The Dow Jones Industrials stepped back 29.51 points to 42,544.42.
The broader index dipped 25.31 points to 5,881.63.
The NASDAQ dropped 175.99 points to 19,310.79.
The S&P 500 has surged more than 23% in 2024, building on a gain of 24.2% from last year. The two-year gain of around 53% is the best since the nearly 66% rally in 1997 and 1998.
Meanwhile, the Dow has added almost 13% in 2024, while the NASDAQ has outperformed with a gain of 29%.
Developments in Washington, D.C., helped fuel the rally in the second half of the year. The Federal Reserve has cut its benchmark interest rate by a full percentage point since September, bolstering confidence that the U.S. economy can sustain its recent growth. Stocks also rallied sharply following President-elect Donald Trump’s win in November, as traders cheered the prospect of lower taxes and a looser regulatory approach under a Republican administration.
The enthusiasm surrounding AI and its potential productivity boost helped power the major averages to a string of record highs throughout the year. AI chip darling Nvidia and iPhone giant Apple — members of the so-called “Magnificent 7” — rose 172% and 30%, respectively, and notched new highs of their own during 2024.
Bank stocks in particular were one group that surged after the election, with JPMorgan up 41% and Goldman Sachs advancing 48%. Shares of Tesla, whose CEO Elon Musk is a close ally of Trump, closed the year up 64%.
Meanwhile, bitcoin has performed even better than the stock market, up 121% for the year and topping $100,000 for the first time.
The market is closed on Wednesday for New Year’s Day.
Prices for the 10-year Treasury lost a bit of ground, raising yields to 4.57% from Monday’s 4.54 %. Treasury prices and yields move in opposite directions.
Oil prices hiked 81 cents to $71.80 U.S. a barrel.
Prices for gold leaped $20.00 an ounce to $2,638.10 U.S.