Global stocks fell on Thursday, with the US market leading the decline, due to weak deliveries from electric vehicle maker Tesla. The S&P 500 and Nasdaq notched their fifth straight daily loss, the longest skid since April.
The Labor Department reported a significant drop in new unemployment claims, indicating a resilient labor market. However, this was overshadowed by Tesla’s poor quarterly results, which led to a decline in the consumer discretionary sector.
The US dollar hit a two-year high against major currencies, driven by expectations of continued economic growth in the US outpacing its peers. The Federal Reserve is expected to keep interest rates low, fueling capital flows into the US stock market.
Oil prices rose on optimism over China’s economy and fuel demand after President Xi Jinping pledged to promote growth. Despite this, stocks were down due to concerns about inflationary policies from the incoming Trump administration.
The yield on 10-year US notes slipped but remained above the problematic 4.5% level that analysts consider a red flag for stocks. European stocks closed higher, buoyed by energy names, while MSCI’s global index fell.
Source: https://www.reuters.com/markets/global-markets-wrapup-1-2025-01-02