Wall Street opened 2025 with modest losses, extending the four-day losing streak that ended the stellar 2024. The S&P 500 fell 0.2%, while the Dow Jones Industrial Average declined 151 points and the Nasdaq composite lost 0.2%.
Tesla was a major contributor to the market’s decline after delivering fewer vehicles in the last three months of 2024 than expected, causing its stock to slump 6.1%. The electric-vehicle company had been one of the biggest winners of 2024, driven by speculation about Elon Musk’s relationship with President-elect Donald Trump.
However, experts are warning that prices across the market have risen too quickly and may be due for a pullback. A measure tracked by Bank of America shows analysts recommending stocks at their highest level since early 2022, sparking concerns among those who fear a sell-off.
On the other hand, companies tied to the energy industry saw gains after crude oil and natural gas prices rose. Constellation Energy jumped 8.4% after announcing $1 billion in combined contracts with the US General Services Administration.
The AI rush is also expected to continue, despite critics’ concerns about expensive stock prices. Investors have revised expectations for interest rate cuts by the Federal Reserve in 2025, citing inflation and policy changes that could drive price pressure upwards.
Treasury yields held steady, while the job market remains solid, according to a report on fewer US workers applying for unemployment benefits. The S&P 500 ended at 5,868.55, with the Dow at 43,392.27 and the Nasdaq composite at 19,280.79.
In foreign markets, indexes fell in Hong Kong and Shanghai due to slower Chinese factory activity, while Europe’s markets were mostly higher.
Source: https://apnews.com/article/stock-markets-holidays-earnings-ffa2b0e3fe8e19c198038e3efd015175