Wall Street's Year-End Rollercoaster: Tech Stocks' Holiday Dips

Tech and growth stocks led Wall Street indices down as the year ends, with major contributors to previous gains taking a holiday break. Selling pressures increased as over 90% of S&P 500 constituents traded in the red, amidst concerns over tax-loss harvesting, interest rates, and a looming administration change.

Wall Street's main indices took a hit on Friday, marking the end of a short but positive holiday week for markets. Tech stocks, which had previously boosted the market, faced substantial pullbacks. The Dow Jones fell 1.26%, S&P 500 dropped 1.68%, and Nasdaq Composite briefly dipped by 2.25%.

Despite traditional expectations of a strong market period, sluggish trading and profit-taking defined the week's close. Over 90% of the S&P 500 constituents were trading lower, suggesting broader selling troubles. Analysts noted the market's reliance on liquidity and possible rebalancing activities by major funds ahead of year-end.

Influence from taxation strategies like tax-loss harvesting and Federal Reserve decisions further fueled market concerns. The aftermath of 2024's rally has prompted adjustments in portfolios as investors await the potential policy changes of the incoming administration in early 2025.

(With inputs from agencies.)