Wall Street's Rollercoaster Week: Market Jitters Amid Tech Stock Volatility

Wall Street began the year's final week with declines, as tech stocks fell after previous gains. Despite monthly and yearly surges, high valuations and volatility raised concerns. As trading volumes decrease due to the holiday, internal market momentum is crucial for year's end performance.

Wall Street's indices started the final week of the year with a dip on Monday, coming off last week's highs as major technology stocks retracted. The S&P 500 moved closer to the 7,000-point threshold, while the Dow hit a new closing peak the previous week. Investors remained hopeful for the 'Santa Claus rally,' a seasonal upswing typically observed in the final and initial trading days of the calendar year, as noted by Stock Trader's Almanac.

This month, all three major indices have made notable gains, with the Dow and S&P 500 heading for an eighth consecutive month of positive growth. Despite concerns about high valuations and market volatility, the ongoing optimism surrounding artificial intelligence, interest rate reductions, and economic fortitude sustained the bull market, which started in October 2022. All principal indices anticipate their third straight year of growth.

As of 09:35 a.m. ET, the Dow Jones Industrial Average dropped by 66.86 points, or 0.14%, to 48,645.62. Meanwhile, the S&P 500 decreased by 22.08 points, or 0.32%, to 6,907.86, and the Nasdaq Composite fell 142.90 points, or 0.61%, to 23,450.20. While six of the eleven S&P sectors traded higher, technology and AI-linked stocks, including Nvidia and Tesla, pulled back, impacting overall market momentum. In lighter economic news this week, investor focus remains on internal market dynamics to determine year-end gains.

(With inputs from agencies.)