NEW YORK, Dec. 27 (Xinhua) -- U.S. stocks dived on profit-taking and wrapped up the holiday-shortened week on a downbeat note on Friday, bringing a largely triumphant year closer to its conclusion.

The Dow Jones Industrial Average fell 333.59 points, or 0.77 percent, to 42,992.21. The S&P 500 sank 66.75 points, or 1.11 percent, to 5,970.84. The Nasdaq Composite Index shed 298.33 points, or 1.49 percent, to 19,722.03.

All of the 11 primary S&P 500 sectors ended in red, with consumer discretionary and technology leading the laggards by losing 1.90 percent and 1.49 percent, respectively. Energy posted the weakest decline, down 0.01 percent.

Much of the market's gains in 2024 have been powered by the "Magnificent Seven" -- Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. Together, these tech giants have accounted for more than half of the year's gains, driven by investor enthusiasm over artificial intelligence opportunities, according to S&P Dow Jones Indexes.

However, analysts continue to warn about the market's heavy reliance on this small group of stocks, highlighting the potential risks if these key players falter. "If a few of these companies fail to beat an elevated bar for positive surprises, there is a risk they would also fall together," said Keith Lerner, chief market strategist at Truist Wealth.

A continued increase in the U.S. Treasury yields this week has weighed on equities. The benchmark 10-year Treasury yield climbed an additional 4 basis points on Friday, reaching 4.629 percent. This followed Thursday's surge to the highest level since May, further pressuring stock markets.

In economic news, with the year's major economic data points now digested, investors are shifting focus to two significant themes for 2025: the Federal Reserve's trajectory for interest rates and the potential market and economic implications of Donald Trump's return to the White House. Both factors are expected to dominate market discussions in the months ahead. Enditem

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