Uncertainty surrounding U.S. interest rates and potential tariffs has dampened investor sentiment, impacting the sectors tracked by the Nuveen Core Equity Alpha Fund. European equities, which often influence global market trends, dipped as the Stoxx Europe 600 Index slipped by 0.1% early on December 23, 2024. This decline was driven by concerns over the Federal Reserve's policy direction and the outlook for tariffs under the incoming U.S. administration. Additionally, the travel and leisure sector faced specific challenges, with Evolution AB experiencing a significant drop following a regulatory review by the UK Gambling Commission.
In the U.S., market volatility has been pronounced, with the Nasdaq Composite experiencing its largest one-day sell-off since September 2022 on December 18. This was primarily due to the Federal Reserve's announcement of a slower pace of rate cuts in 2025, which has heightened concerns about prolonged higher interest rates. The S&P 500 also saw a notable decline, further contributing to the cautious market environment. Meanwhile, short interest in large-cap ETFs increased by 8% last week, reflecting growing bearish sentiment among investors.
The Nuveen Core Equity Alpha Fund (JCE) saw a slight decline to $15.48, down 0.06% as of 10:00 AM ET on December 23, 2024.