The Dow Jones Industrial Average rose 28.77 points, or 0.07%, to 43,325.80 on Thursday, extending its winning streak to five sessions despite light trading volumes and rising US Treasury yields.
Rising yields, which hit their highest since May at 4.64% earlier in the session, traditionally weigh on growth stocks as they increase the cost of borrowing. The tech-heavy S&P 500 fell 0.04%, while the Nasdaq Composite lost 0.05%.
Tesla led the decline among megacap stocks, falling 1.8%. However, Apple rose 0.3% and edged closer to hitting a market value of $4 trillion.
The US labor market remained strong, with new jobless claims dipping to 219,000, below estimates. The S&P sectors that traded lower included consumer discretionary and energy, which tracked weakness in US crude prices.
Investors are closely watching the Federal Reserve’s projection of fewer interest rate cuts in 2025, which may impact the momentum driving markets higher. The “Santa Claus rally” seasonally strong period has seen significant reliance on megacap stocks, but analysts expect input from other sectors to support further benchmark index increases.
Source: https://www.reuters.com/markets/us/futures-lower-holiday-thinned-trading-2024-12-26