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Dow tumbles 500 points as Wall Street sells off Big Tech

  • CNN
  • December 27, 2024
CNN

 — 

US stocks tumbled Friday, heading for a down week despite a year of historic highs.

The Dow was more than 500 points lower by midday, the S&P 500 lost 1.6% and the Nasdaq Composite was down by 2.2% after a selloff in Big Tech stocks.

Trading volume was thin due to the shortened holiday week, magnifying any moves. Don't fear: Such dramatic market moves have become something of a Christmas week tradition, as buying and selling can have a dramatic effect on stock indexes with most traders on vacation.

Bitcoin's tremendous late-year rally also fizzled, as traders looked to profit taking. The cryptocurrency plunged to around $93,900 Friday after topping $106,000 earlier this month on hopes that President-elect Donald Trump will usher in a crypto-friendly administration when he returns to the White House next month.

Treasury yields rose Friday, with the 10-year passing 4.6%, potentially pushing some trading out of equities.

Looking ahead to 2025, stocks are likely to outperform bonds even after a two-year run of strong performance, said Anthony Valeri, investment management director at California Bank & Trust. "Investors should maintain their equity exposure into the New Year," he wrote in a note issued Friday. "Stocks are still the best investment to protect against inflation."

This is a developing story and will be updated.