Market Update: Stocks Slip After Holiday Break
As trading resumed on Wall Street following the Christmas holiday, stocks took a slight dip, with the S&P 500 falling 0.2%. This modest decline came on the heels of a three-day winning streak, with the Dow Jones Industrial Average down 64 points, or 0.2%, as of 10:02 a.m. Eastern time. The Nasdaq composite also felt the pressure, slipping 0.4%.
Tech Giants Weigh on the Market
Big Tech stocks were among the biggest drags on the market, with semiconductor giant Nvidia slipping 0.8%. Google parent Alphabet fell 0.7%, while Netflix gave up 0.9%. Meta Platforms was 1.1% lower, contributing to the overall downward trend.
Jobless Claims Hold Steady, But Continuing Claims Rise
In other economic news, U.S. applications for unemployment benefits remained steady last week, according to the Labor Department. However, continuing claims rose to their highest level in three years, sparking concerns about the labor market.
Treasury Yields Rise
In the bond market, Treasury yields saw an uptick, with the yield on the 10-year Treasury rising to 4.63% from 4.59% late Tuesday.
Global Markets Take a Break
Major European markets, as well as those in Hong Kong, Australia, New Zealand, and Indonesia, were closed for the holiday, leading to a relatively quiet trading day.
Historical Trends Suggest Year-End Rally
Despite the current dip, U.S. markets have historically experienced a boost at year’s end, even with lower trading volumes. In fact, the last five trading days of each year, plus the first two in the new year, have brought an average gain of 1.3% since 1950.
Year-to-Date Performance Remains Strong
So far this month, the U.S. stock market has given back some of its gains since the presidential election, which had raised hopes for faster economic growth and more lax regulations. However, the benchmark S&P 500 is still up roughly 26% this year, remaining near its most recent all-time high set earlier this month – its 57th record high this year.
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