Markets Kick Off New Year with a Slide
The first trading day of 2025 got off to a rocky start, with stocks erasing early gains as Wall Street returned from the holiday break. The S&P 500 fell 0.7%, while the Dow Jones Industrial Average dropped nearly 0.7%. The tech-heavy Nasdaq Composite slid 0.9% after markets reopened from Wednesday’s closure.
Tesla Shares Take a Hit
Tesla shares plummeted almost 6% after the electric vehicle maker posted its first annual decline in deliveries. The company delivered 495,570 vehicles in the fourth quarter, making 2024 the first year of a decline in annual deliveries since 2011. Meanwhile, an investigation is underway after a Cybertruck loaded with firework mortars and fuel canisters exploded in Las Vegas, killing one person.
Bond Yields and US Dollar Index on the Rise
Bond yields and the US Dollar Index continued to march higher on Thursday. The 10-year treasury yield was up about 2 basis points to hover just under 4.6%. Meanwhile, the US Dollar Index rose above 109, hitting its highest level since November 2022.
Mortgage Rates Reach Highest Level Since July
US mortgage rates rose to 6.97% to reach the highest level since early July, data showed. The gain weighed on applications for home purchases and dented refinancing, according to the Mortgage Bankers Association.
Weekly Jobless Claims Fall to Lowest Level Since March
Weekly jobless claims fell to their lowest level since March. Data released by the Department of Labor on Thursday morning showed claims of 211,000, a decrease from the previous week’s upwardly revised level of 220,000.
Apple Shares Fall After Rare Price Discounts in China
Apple shares fell around 3% after the iPhone maker offered rare price discounts on its latest models in China, reflecting rising competition from local handset makers.
New Debt Ceiling Sparks Debate
A new debt ceiling was established this week, setting up a debate for the months ahead about averting a government default. The parameters of that coming standoff are already making President-elect Donald Trump unhappy.
FBI Investigates Cybertruck Explosion
The FBI is investigating whether the blast outside the Trump International Hotel was an act of terrorism. Authorities have found no “definitive link” between the Bourbon Street attack in New Orleans on Wednesday and the explosion of a Tesla Cybertruck filled with fireworks and fuel tanks outside a Trump hotel in Las Vegas.
Cloudflare Shares Jump After Double Upgrade
Shares of Cloudflare jumped more than 5% on Thursday after the cloud platform company received a double upgrade from Goldman Sachs. The analysts said they see a 28% upside for the stock and raised their price target to $140.
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