Tech Stocks Tumble: End-of-Year Market Volatility

Tech and growth stocks pulled Wall Street's main indexes down on a traditionally strong market period. The Dow fell 0.82%, S&P 500 by 1.24%, and Nasdaq by 1.80%. Year-end selling and tax planning drove the decline, with uncertainties over future policy changes and Fed actions contributing.

Wall Street's main indexes faced a downturn on Friday, primarily influenced by declines in tech and growth stocks as this year's trading period drew to an end. The Dow Jones fell by 0.82%, while the S&P 500 and Nasdaq Composite saw declines of 1.24% and 1.80%, respectively.

Notably, 10 of the 11 major S&P sectors saw losses, with information technology and consumer discretionary sectors dropping the most. These sectors had propelled much of the market's gains throughout 2024 but faced significant declines towards the year's end.

Pundits attribute the fall to typical year-end profit-taking, minimal trading volume, and tax strategies as a priority before the holiday break. Investment experts noted that despite possible policy shifts in the coming year, tax implications are one of the leading factors influencing current market behavior.

(With inputs from agencies.)