Wall Street experienced a decline in premarket trading on Monday, reflecting a lack of enthusiasm as the year nears its conclusion. Futures for the S&P 500 fell by 0.4%, while the Dow Jones Industrial Average saw a decrease of 0.3%.
In South Korea, the Kospi index dropped 0.2% to 2,399.49. Shares of Jeju Air Co. plummeted by 8.7% following a tragic incident where one of their Boeing 737-800 aircraft skidded off a runway, colliding with a concrete wall and igniting, resulting in the deaths of 179 of the 181 passengers on board. Authorities are currently investigating the failure of the aircraft’s landing gear to deploy.
This disaster represents another setback for Boeing, which is already grappling with the aftermath of a machinists’ strike and ongoing safety concerns regarding its best-selling aircraft. Boeing’s stock dipped by 3% in premarket trading and has plummeted over 30% this year.
Despite a slowdown post-Christmas, U.S. financial markets are on course for a remarkable annual performance, with the S&P 500 projected to gain around 25% in 2024. This would mark consecutive yearly gains exceeding 20% for the first time since 1997-1998.
The market uptrend is attributed to positive economic indicators that show robust consumer spending and a stable labor market. Although inflation remains elevated, it has been gradually declining.
Positive economic reports and easing inflation have influenced a shift in the Federal Reserve’s interest rate policy this year, with expectations of interest rate cuts fueling market optimism. The central bank has recently implemented its third interest rate cut in 2024.
In Asia, Japan’s Nikkei 225 index concluded the year down 1% at 39,894.54. The final trading session ended on a somber note, with Japan Exchange Group’s CEO apologizing during the traditional year-end ceremony for a recent insider trading scandal.
“I acknowledge trust towards the market is essential for investors to trade with confidence,” the CEO stated, emphasizing the exchange’s commitment to enhance training and oversight in the wake of the investigation.
Meanwhile, early European trading saw Germany’s DAX retreating by 0.1%, the CAC 40 in Paris increasing by 0.2%, and Britain’s FTSE 100 remaining unchanged.
In the Asia-Pacific region, Hong Kong’s Hang Seng index fell by 0.2% to 20,041.42, while the Shanghai Composite index rose by 0.2% to 3,407.33. In Australia, the S&P/ASX 200 decreased by 0.3% to 8,235.00.
U.S. benchmark crude oil prices increased by 28 cents to $70.88 per barrel, and Brent crude, the international standard, rose by 20 cents to $73.99 per barrel.
The dollar is currently trading at 157.55 yen, while the euro has risen to $1.0445.
