Stocks moved lower Monday in one of the final trading sessions of 2024, as a banner year for investors appears to be ending on a sour note.

In a turbulent trading day indicative of investor concern, the major stock indices, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, all faced significant declines on Monday. The Dow lost 418.48 points, closing at 42,573.73, while the S&P 500 and Nasdaq fell by 1.07% and 1.19%, respectively. Despite a generally strong performance throughout the year with cumulative growth of 24% for the S&P 500 and nearly 30% for the Nasdaq, the recent sell-off signifies potential profit-taking ahead of the new year. Market analysts have pointed toward the absence of key news catalysts driving the downturn, suggesting it may be largely due to typical light trading volumes seen during the holiday season. Prominent stocks like Tesla and Meta Platforms saw losses, which raises concerns about a broader momentum loss in the tech sector. Jeremy Siegel, a senior economist, has highlighted an increasing probability of a correction in 2024, suggesting that the recent market highs may have been the peak of investor optimism. Furthermore, the bond market dynamics, including the 10-year Treasury yield climbing above 4.6%, may also be influencing stock performance. Interestingly, while many stocks fell, Nvidia emerged as a rare gainer, boosting investor sentiment still slightly among the large-cap indices. Additionally, amid this pullback, there is hope for a year-end rally—often referred to as a 'Santa Claus rally'—although recent trends suggest a lack of momentum could challenge this. Overall, the market's end-of-year volatility, combined with economic data releases and the typically lower trading volumes during this period, means that investors should tread carefully. While some analysts remain optimistic about recovery in January, the current sentiment leans toward caution, and an AI review of this situation suggests a close watch on near-term market indicators is essential for strategic investment planning in the weeks ahead.