U.S. stocks declined on Monday in one of the final trading sessions of 2024, as a banner year for investors appears to be ending on a sour note. The Dow Jones Industrial Average lost 418.48 points (-0.97%) to close at 42,573.73, while the S&P 500 fell 1.07% to 5,906.94, and the Nasdaq Composite dropped 1.19% to 19,486.78.

Trading was volatile throughout the day, with the Dow dropping more than 700 points at session lows. No apparent catalyst drove the decline, although light trading volumes typical of the holiday season likely contributed.

For 2024, the major averages remain on track for a strong year, with the S&P 500 up about 24%, the Dow up 13%, and the Nasdaq gaining nearly 30%, its best performance since 2021. However, recent sessions have seen losses, driven by year-end profit-taking and concerns over market momentum.

In the bond market, 10-year Treasury yields retreated to 4.54% after peaking above 4.6% last week. Meanwhile, the Chicago Purchasing Managers Index (PMI) came in at 36.9, below expectations of 42.2, indicating weaker economic activity. Pending U.S. home sales rose for a fourth consecutive month in November, reaching their highest level since early 2023.

Globally, Europe’s Stoxx 600 Index declined, and Asian equities snapped a five-day rally. Commodities saw mixed performance, with oil edging higher amid 2025 risk considerations, while gold is set to end the year with significant gains.

Looking ahead, traders anticipate key economic data and the potential for a “Santa Claus rally,” a phenomenon where markets often rise during the final five trading days of December and the first two in January.