The Dow Jones Industrial Average closed down 120.5 points, or 1.1%, to 10,428.1. More than half of that selling came in the last minutes of trading. The S&P 500 finished down 11.3 points, or 1%, at 1115.1 and the Nasdaq was off 22.1 points, or 1%, at 2269.2.
Even with Thursday’s decline, the Dow finished the year up 18.8%. The Nasdaq gained 43.9% and the S&P 500 was up 23.5% on the year. For the Dow, it was the biggest yearly point and percentage gain since 2003.
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The close at the end of the decade was less encouraging. The Dow has lost 9.3% over the past 10 years while the S&P 500 and the Nasdaq are down by 24.1% and 44.2%, respectively.
The final trading week of the year is typified by light trading, sandwiched between two long holiday weekends, and 2009 was no exception. Trading volume on the Dow stood at 137.9 million, compared with an average daily volume of 200.4 million.
Late in the session, the U.S. dollar pulled slightly ahead against a basket of foreign currencies, up by 0.1% and prompting a sharp selloff in the stock market.
Commodities had already finished the session ahead. Oil for February delivery settled up by 8 cents, or 0.1%, at $79.36 a barrel and the February gold contract settled up by $3.70 at $1,096.20 an ounce.
Prices on U.S. Treasuries were lower, pushing yields higher. The two-year note’s yield was up to 1.143% and the yield on the 10-year note rose to 3.837%.