The S&P 500 experienced a decline on Friday, December 27, 2024, primarily driven by losses in the technology sector. This overview analyzes key market movements, including Tesla’s performance, Lamb Weston’s surge, and fluctuating oil prices.
Major U.S. stock indexes closed out Christmas week with losses, as many prominent technology companies that fueled market gains in 2024 faltered in the final trading sessions of the year. The S&P 500 fell by 1.1% on Friday, with the tech-heavy Nasdaq experiencing a more significant drop of 1.5%. The Dow Jones Industrial Average also declined by 0.8%. Despite these losses, all three indexes managed to finish the holiday-shortened week in positive territory.
Tech Sector Under Pressure
One of the most notable decliners within the S&P 500 was server manufacturer Super Micro Computer (SMCI), whose shares plummeted by 5.2%. This sharp decline comes as the company faces ongoing scrutiny regarding its accounting practices and ability to meet reporting deadlines. The Nasdaq recently granted Supermicro an extension to file its delayed annual report, but uncertainties surrounding the company’s financial situation continue to weigh on investor sentiment.
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Tesla (TSLA), another major player in the tech sector, saw its stock price fall by 5%, extending losses from the previous day. This decline comes ahead of the company’s anticipated release of quarterly production and delivery figures next week. Market analysts suggest that Tesla’s 2024 delivery totals might fall short of the previous year’s results, based on current consensus estimates.
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Palantir Technologies (PLTR), a data analytics software company, also experienced a setback, with its stock price declining by 3.7%. This reversal followed a recent surge in the company’s share price after its inclusion in the Nasdaq 100 Index and positive analyst ratings.
Lamb Weston and Oil Prices Buck the Trend
In contrast to the broader market decline, Lamb Weston Holdings (LW) saw its shares rise by 2.6%, making it the top performer in the S&P 500 on Friday. This surge followed reports that activist investor Jana Partners is intensifying its push for changes at the frozen potato provider. Jana recently advocated for board changes or a potential sale of the company after Lamb Weston reported a loss and appointed a new CEO.
The energy sector also showed some positive momentum, with crude oil prices rising following a reported weekly inventory drop by the U.S. Energy Information Administration. This increase in oil prices benefited companies like APA Corp. (APA), an oil and gas exploration and production firm, whose shares gained 1.1%. Meanwhile, Hershey (HSY) stock saw a modest increase of 0.9% following recent speculation about a potential merger with Mondelez (MDLZ).
Conclusion
Friday’s trading session highlighted the volatility of the stock market, particularly in the technology sector. While major indexes ended the week with overall gains, the performance of individual companies varied significantly. Factors such as earnings expectations, activist investor pressure, and commodity price fluctuations continue to influence investor sentiment and drive market movements. As the year comes to a close, investors will be closely watching for further developments and indicators that could shape the market landscape in the coming months.
