On Thursday, the stock market in the U.S. closed with mixed results as major technology and communications companies weighed down the overall performance.
The S&P 500 saw a minor decline of less than 0.1%, interrupting its three-day streak of gains as it fluctuated throughout the day with slight ups and downs.
Meanwhile, the Dow Jones Industrial Average saw an uptick of 0.1%, while the Nasdaq composite slipped by 0.1%.
Trading activity was lower than average, likely due to the markets reopening after the Christmas break.
Nvidia, the semiconductor powerhouse with a significant market influence, experienced a slight drop of 0.2%.
Other tech giants such as Meta Platforms and Amazon both decreased by 0.7% and 0.9% respectively, with Netflix also falling by 0.9%.
Tesla was particularly impacted, recording a more substantial decline of 1.8% within the S&P 500.
However, not all tech stocks performed poorly. Broadcom advanced by 2.4%, while Micron Technology and Adobe climbed by 0.6% and 0.5% respectively.
Health care stocks marked a positive trend, with CVS Health gaining 1.5% and Walgreens Boots Alliance achieving a notable increase of 5.3%, the highest for any S&P 500 stock that day.
Retailers enjoyed a good day as well, with Target going up by 3%, Ross Stores improving by 2.3%, Best Buy increasing by 2.9%, and Dollar Tree jumping by 3.8%.
Market observers are keenly interested in the retail sector, particularly regarding the success of the holiday shopping season.
The day following Christmas is traditionally among the top ten busiest shopping days as consumers flock to make use of gift cards and seek out deals.
Shares of Honda and Nissan saw significant increases of 4.1% and 16.4% respectively, following the announcement that the two Japanese automobile manufacturers are exploring a potential merger.
In summary, the S&P 500 dipped by 2.45 points to settle at 6,037.59, while the Dow climbed by 28.77 points to close at 43,325.80. The Nasdaq composite dropped by 10.77 points, finishing at 20,020.36.
The labor market in the U.S. also made headlines, with unemployment benefit applications remaining stable over the past week, although ongoing claims rose to their highest point in three years, according to the Labor Department.
In the bond market, Treasury yields predominantly decreased, with the yield on the 10-year Treasury falling to 4.58% from 4.59% earlier in the week.
Many major European markets, along with those in Hong Kong, Australia, New Zealand, and Indonesia, were closed, leading to expectations of muted trading during the week, given the limited economic data on the schedule.
Historically, U.S. markets tend to receive a year-end boost despite lighter trading volumes, with the last five trading days of the calendar year and the first two days of the new year averaging a gain of 1.3% since 1950.
This month, the U.S. stock market has seen a decrease in some of the gains achieved following the Election Day victory of President-elect Donald Trump, who had sparked optimism for quicker economic growth and more lenient regulations that encourage corporate profitability.
Still, there are growing concerns regarding Trump’s inclination toward tariffs and policies that may lead to inflated prices, increased federal debt, and challenges in international trade.
Nevertheless, the market is poised for solid returns in 2024, with the S&P 500 index rising 26.6% this year, remaining close to its recent peak, which coincided with its 57 record highs recorded throughout the year.
Investors are looking ahead to various economic reports next week, including updates about pending home sales, home pricing trends, U.S. construction expenditure, and data reflecting manufacturing activity.
