U.S. equity markets slipped on Monday and gold fell sharply from its all‑time high, marking a tentative sell‑off as the year draws to a close.
Market Overview
The three major U.S. indexes all closed lower. The Dow fell about 0.5% to 48,462, the S&P 500 slipped 0.35% to 6,906, and the Nasdaq dropped 0.5% to 23,474.
Key Drivers
Investors were watching the latest talks between the U.S. and Ukrainian leaders about ending the Russia‑Ukraine war. Hopes faded after Russia accused Ukraine of targeting President Putin’s residence, adding uncertainty.
At the same time, Treasury yields eased as traders priced in possible Federal Reserve rate cuts next year. The 10‑year yield fell to 4.106% and the 2‑year to 3.457%.
Sector Performance
Defensive sectors such as utilities and consumer staples held up better than the broader market, which has been under pressure for most of the year.
Bond and Currency Moves
- U.S. 10‑year Treasury yield: 4.106% (down 2.8 bps)
- U.S. 30‑year Treasury yield: 4.794% (down 2.5 bps)
- Dollar index: flat at 98.03
- Euro: $1.177, down 0.01%
- Dollar vs yen: 156.06 yen, down 0.31%
Commodities
Oil prices jumped on worries about supply disruptions in the Middle East and the stalled peace talks. U.S. crude rose 2.36% to $58.14 per barrel and Brent climbed to $61.94.
Gold, however, tumbled from its record high as traders took profits. Spot gold fell 4.47% to $4,329.65 an ounce, and U.S. gold futures dropped 3.31%.
What This Means for Investors
With only three trading days left in the year, the market is likely to see more short‑term volatility. Defensive stocks may continue to outperform, while investors keep an eye on any breakthrough in the Ukraine peace process and upcoming Fed policy signals.
Disclaimer: This is my perspective, not a prediction. Always do your own research before making any investment decisions.