Stocks closed Friday slightly lower, but posted robust gains for 2016. This may be a sign of the end of the post-Donald Trump rally, but trading volume was light and we'll have to wait until next year to get a good read on the markets.
The Dow Jones Industrial Average gained 13.5% in 2016, while the S&P 500 rose 9.4% and the Nasdaq added 7.5%.
On Friday, the last trading day of the year, the S&P 500 was down 0.46%, the Dow was 0.29% lower, and the Nasdaq was 0.90% lower. For the week the S&P 500 dropped 1.10%, the Dow lost 0.86% and the Nasdaq shed 1.46%.
The Nasdaq reached a record high at Tuesday's close, but rising consumer confidence and positive housing-market data weren't enough to push the Dow Jones Industrial Average to 20,000 by year-end. The Dow was being watched closely as it neared 20,000 after hitting an intraday high of 19,980 on Tuesday, but retreated the rest of the week.
David Schiegoleit, U.S. Bank managing director of investments, said he doesn't want to read too much into the losses this week because the low trading volumes have been "anemic."
"I want to see if we can get any kind of follow-through on this downward momentum here,"Schiegoleit said in a phone interview. "If that happens after the new year, I think that would kind of confirm the rally having run its course and maybe we're hitting a reset button. I do expect volumes to pick up next week and if we confirm these price levels with higher volume that will be a better sign that the market is letting off some steam."