Tech stocks fall to end holiday week

On By Littum

Key takeaways

  • The S&P 500 fell 1.1% on Friday, December 27, 2024, as technology stocks lost ground heading into the final weekend of the year.
  • Tesla shares fell for a second straight day ahead of next week’s expected update on quarterly vehicle deliveries.
  • Lamb Weston shares rose on reports that an activist investor has brought in another former director as it pushes for changes at the French fry maker.

Major U.S. stock indexes fell to close out the Christmas week as many major technology stocks at the center of 2024’s market gains stumbled heading into the final sessions of the year.

The S&P 500 closed Friday’s session 1.1% lower. Underperforming tech stocks weighed on the Nasdaq, which fell 1.5%, while the Dow Industrials fell 0.8%. All three indexes ended the holiday-shortened week in positive territory.

Shares of server maker Super Micro Computer ( SMCI ) fell the most of any S&P 500 stock, falling 5.2%. Nasdaq granted an extension earlier this month for Supermicro to file its delayed annual report, but questions remain about the company’s accounting practices and ability to meet the updated deadline.

Tesla ( TSLA ) shares fell 5%, extending losses posted Thursday. The electric car giant is expected to announce quarterly production and delivery figures next week. Based on current consensus estimates for fourth-quarter vehicle deliveries, Tesla’s 2024 totals could come in below last year’s results.

Palantir Technologies ( PLTR ) shares fell 3.7%, reversing some of this week’s gains. Shares of the data analytics software provider debuted on the Nasdaq 100 index on Monday, and later in the week, Wedbush analysts highlighted Palantir as a top pick among artificial intelligence software companies, along with Salesforce (CRM).

Lamb Weston Holdings ( LW ) shares rose 2.6%, posting the strongest gains in the S&P 500 on Friday, following reports that activist investor Jana Partners is partnering with another former company executive as it pushes for a transformation of the frozen potato provider. Jana recently called for board changes or a sale of the business after Lamb Weston made a loss and appointed a new chief executive.

Crude oil prices ticked higher as the US Energy Information Administration reported a weekly decline in inventories. The shares in the oil and gas exploration and production company APA Corp. (APA) rose 1.1%.

Shares in chocolate maker Hershey (HSY) ticked up 0.9% on Friday. Hershey shares rose earlier this month on the possibility of a combination with snack food giant Mondelez ( MDLZ ) but gave back those gains in recent weeks. Following the reports, Mondelez announced another $9 billion share buyback and reaffirmed its focus on bolt-on acquisitions, omitting discussion of any major move, but TD Cowen analysts recently said this does not completely rule out the potential for a deal with Hershey .