Stocks to Decline During Christmas Week?
November saw a sharp rally for the US stock market thanks to the election results, but December has been a decidedly lower month, and there are fears that may continue through the holidays.
Are the concerns of a low holiday season grounded in reality at all? With last week’s declining stock prices, it looks like the week of Christmas is set to be a downer for the market. Monday’s stock trading opened slightly elevated, getting things off to a good start, but there are still fears that this positive trend may not be sustainable.
The Nasdaq Composite lcimbed 0.35% for the day so far compared to Friday’s closing. The S&P 500 started the day positive and then went flat by the time of this writing. The Dow Jones started off good as well, gaining from Friday’s closing, but then fell to a 0.51% loss.
What these numbers tell us is that the stock market is undergoing rapid change and that the overall trend is downward. The market will shut down for the holidays and then start back up before the week is over, but we anticipate a mostly bearish week across all market indices.
Market Factors to Consider
The most recent market mover has been the interest rate cut issued by the Federal Reserve. That cut came in lower than expected and caused the market to decline. The cut was followed by news that the Fed will only be issuing two more cuts in 2025, which is less than expected. That could cause further market decline, and at the moment, the news has slowed down stock trading.
There should be more positive news coming out of the Trump administration in the near future. Recently, Trump paid a visit to the New York Stock Exchange and issued vague comments on how the economy should do well under him. Once his people put a plan in place as to what kind of improvements they want to make to the economic framework, that will give the stock market something solid to go on.

