U.S. Stocks Decline Amid Rising Treasury Yields

U.S. stocks experienced a modest pullback following strong gains throughout December, with the S&P 500 down 1.11% and the Nasdaq Composite falling 1.49% as profit-taking emerged in low-volume trading ahead of the year-end. The major indices still recorded significant annual increases of 25% for the S&P 500 and 31% for the Nasdaq in 2024. Concerns regarding President-elect Donald Trump's policies, including potential tariffs and tax cuts, have contributed to rising Treasury yields, which approached 4.6%, the highest level since April. Despite the dip, analysts predict a continuation of the year-end Santa Claus rally, although uncertainties remain regarding the Federal Reserve's monetary policy and geopolitical tensions. Additionally, ongoing unemployment claims have risen, indicating that laid-off workers are struggling to find new jobs. Overall, the market remains cautious as it transitions into 2025, with investors closely monitoring economic indicators and policy developments.