Stocks erased session gains on the first trading day of 2025, as Wall Street returned from holiday. The S&P 500 fell 0.7%, while the Dow Jones Industrial Average dropped nearly 0.7%. The tech-heavy Nasdaq Composite also declined 0.9%.
Bond yields and the US Dollar Index rose on Thursday, with the 10-year treasury yield increasing by about 2 basis points to hover just under 4.6%. Mortgage rates reached a six-month high of 6.91%, weighing on home purchase applications.
Weekly jobless claims fell to their lowest level since March, but data from the Department of Labor showed that the US economy is still experiencing headwinds. Companies with less than half of their revenue in the US saw earnings growth nearly 14 times faster than those with more international exposure.
The Dow Jones Industrial Average erased early morning gains due to a fall in shares of Boeing. The airline giant’s stock dropped as much as 3.5% following Sunday’s deadly crash of a 737-800 aircraft operated by Jeju Air in South Korea.
Tesla’s fourth-quarter deliveries were also announced, with the electric vehicle giant delivering 495,570 vehicles. However, this fell short of analyst expectations, and Tesla’s stock dropped more than 3%. Despite this, the company’s stock was still up more than 60% for the year.
The decline in markets is attributed to economic uncertainty and concerns over inflation. As Pras Subramanian noted in his roundup of Tesla’s biggest news in 2024, production growth would be “notably lower” in the year ahead.
Source: https://finance.yahoo.com/news/live/stock-market-today-dow-nasdaq-sp-500-waver-as-wall-street-eyes-a-new-year-comeback-143120044.html