Stocks Drop In the Run Up To New Year – US Market Wrap

A selloff in the world’s largest technology companies hit stocks in the final stretch of a stellar year.

In another session of slim trading volume – which tends to amplify moves – the S&P 500 lost 1.1% and the Nasdaq 100 slipped 1.4%. While every major industry succumbed to Friday’s slide, tech megacaps bore the brunt of the selling. That’s after a torrid surge that saw the group dubbed “Magnificent Seven” account for more than half of the US equity benchmark’s performance in 2024.

The S&P 500 and the Nasdaq 100 trimmed this week’s gains. The Dow Jones Industrial Average slipped 0.8%. A gauge of the Magnificent Seven shares sank 2%, led by losses in Tesla and NVIDIA. The Russell 2000 index of small caps dropped 1.6%.