Stock markets on Wall Street concluded on a somewhat mixed note on Thursday, with heavyweight stocks from the technology and communication sectors counteracting gains observed in other areas of the market.
The S&P 500 index experienced a slight decline of less than 0.1%, interrupting its recent three-day surge. The Dow Jones Industrial Average, however, managed to post a modest increase of 0.1%, while the Nasdaq composite ended down by 0.1% as well.
Trading volume was notably lower than usual following the reopening of U.S. markets after the Christmas holiday.
Among the notable decliners in the tech sector, Nvidia, a prominent semiconductor company, suffered a small drop of 0.2%. Additionally, shares of Meta Platforms slipped by 0.7%, while both Amazon and Netflix saw a decline of 0.9% each.
Tesla stood out as one of the larger losers in the S&P 500, with shares finishing lower by 1.8%. In contrast, certain tech firms displayed stronger performances. Broadcom’s shares jumped by 2.4%, while Micron Technology and Adobe also saw modest gains of 0.6% and 0.5%, respectively.
The healthcare sector shone brightly, with CVS Health climbing by 1.5% and Walgreens Boots Alliance achieving the biggest gain among S&P 500 stocks with an increase of 5.3%. A number of retail companies also posted notable advancements. Target’s shares rose by 3%, Ross Stores increased by 2.3%, Best Buy improved by 2.9%, and Dollar Tree gained 3.8%.
Market participants are keenly observing retail performance during the holiday shopping period. The day following Christmas typically ranks as one of the busiest shopping days of the year, prompting consumers to redeem gift cards and hunt for bargains both online and in-store.
In the automotive sector, U.S.-listed shares of Honda and Nissan increased by 4.1% and 16.4%, respectively, following the announcement that the companies are in discussions about a potential merger.
In summary, the S&P 500 declined by 2.45 points, bringing it to 6,037.59, while the Dow saw a rise of 28.77 points to reach 43,325.80. The Nasdaq composite fell by 10.77 points, closing at 20,020.36.
On the labor market front, the U.S. reported steady unemployment benefits claims for the previous week; however, continuing claims rose to a peak not witnessed in three years, according to the Labor Department.
Meanwhile, Treasury yields mostly saw a decrease in the bond market, with the yield on the 10-year Treasury dropping slightly from 4.59% to 4.58% since late Tuesday.
Most major European markets remained closed, alongside those in Hong Kong, Australia, New Zealand, and Indonesia.
Trading activity is expected to remain subdued throughout the week, as the economic calendar is relatively light. Despite this, the U.S. markets typically experience an uptick at the end of the year, even when trading volumes are lower. Historically, the final five trading days of the year plus the first two of the following year yield an average gain of 1.3% since 1950.
This month, the U.S. stock market has seen a retreat from some of the gains made since the election of President-elect Donald Trump, which initially raised optimism for accelerated economic growth and relaxed regulations to enhance corporate profits. There are now rising concerns that Trump’s inclination towards tariffs and other measures could result in increased inflation, expanded government debt, and complications for global trade.
Nevertheless, the outlook for the U.S. market remains positive, with predictions indicating robust returns for 2024. The S&P 500 has seen a 26.6% increase so far this year and continues to hover near its latest all-time high achieved earlier this month—a record that adds to a total of 57 peaks hit this year.
Looking ahead, Wall Street will be anticipating several economic reports next week, including updates on pending home sales, home prices, U.S. construction spending, and insights into manufacturing activity.
