Market Update: Santa Claus Rally Stalls as Investors Digest Economic Data
The US stock market struggled to build on the “Santa Claus” rally that began on Tuesday, as investors digested the latest economic data and traded in a light session following the Christmas holiday break.
Jobless Claims Fall, But Labor Market Cools
The Labor Department reported that weekly jobless claims fell to 219,000, beating expectations of 223,000. However, continuing claims jumped by 46,000 to 1.91 million, the highest level since November 2021, indicating a cooling labor market.
Stocks Mixed as Trading Volume Remains Light
The S&P 500 and tech-heavy Nasdaq closed just below the flat line, while the Dow Jones Industrial Average rose about 28 points, or nearly 0.1%. Small cap stocks were a bright spot, with the Russell 2000 gaining more than 0.9%.
Laggards of 2024: Boeing and Nike
Boeing and Nike have been the biggest laggards of 2024, with Boeing down 30% and Nike down 29% since the start of the year. Tesla, on the other hand, has been a standout performer, up more than 80% year-to-date.
Bitcoin Falls Below $96,000
Bitcoin fell 3% on Thursday, hovering near the $96,000 level. Despite the recent dip, bitcoin is up nearly 120% year-to-date, far outperforming other asset classes like gold and the major stock market averages.
Tesla and Meta Weigh on Tech Sector
Shares of Tesla and Meta fell, weighing on the Communication Services and Consumer Discretionary sectors. Meanwhile, chip stock Broadcom rose for a fourth straight day, and GameStop stock rose as much as 10% early Thursday before paring gains.
Apple Hits All-Time High
Apple stock hit an all-time intraday high Thursday after a price target raise to a Street high of $325 from Wedbush analysts. The stock was still on track to notch another record close after hitting a high of $258.20 on Christmas Eve.
AI Chip Heavyweight Nvidia Falls
Shares of AI chip heavyweight Nvidia fell more than 1% while the rest of the “Magnificent Seven” stocks wavered on Thursday. Technology stocks led the modest market declines as the “Santa Claus rally” from Wednesday took a pause.
Looking Ahead to 2025
As we head into 2025, investors are looking for clues on what the new year will bring. From AI agents taking over to crypto’s widespread acceptance, there are many factors that could shape the market in the coming year.
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