Tech Tumble: Wall Street's Holiday Blip

Tech and growth stocks caused a drop in Wall Street's main indexes, despite an otherwise strong week. Key players like Nvidia and Tesla saw declines, influenced by interests rates and cautious market sentiments ahead of the new U.S. administration. However, a 'Santa Claus rally' might uplift markets.

Wall Street's main indexes received a setback on Friday as tech and growth stocks waned, concluding an otherwise optimistic holiday-shortened trading week that was set against expectations of a traditionally robust market phase.

U.S. Treasury notes experienced increased yields, with the benchmark 10-year note nearing a multi-month high achieved on Thursday, recorded at 4.591%. The setback was notable among rate-sensitive growth stocks like Nvidia, which fell by 2.3%, and Tesla, which dipped 2.8%, while Microsoft decreased by 1.1%.

Despite the dip, Wall Street remains positioned for weekly gains. However, the cautious sentiment prevails with Clayton Allison from Prime Capital Financial suggesting that investors are holding back major moves until 2025 in anticipation of a new U.S. administration.

(With inputs from agencies.)