Wall Street exhibited mixed results in afternoon trading on Thursday, as gains in technology sectors and retail stocks helped to mitigate losses in other areas of the market.
The S&P 500 index saw a slight decline of less than 0.1% after fluctuating between modest gains and dips. This drop follows a three-day winning streak for the benchmark index.
As of 1:52 p.m. Eastern, the Dow Jones Industrial Average showed a mere increase of 6 points, also reflecting a change of less than 0.1%. Meanwhile, the Nasdaq Composite index was down slightly by less than 0.1%. Trading volumes were lighter than average, as U.S. markets resumed operations following the Christmas holiday.
Technology company Broadcom experienced a rise of 2.9%, while Micron Technology climbed by 1% and Adobe saw an increase of 0.8%. Although tech stocks generally performed well, significant players in the industry negatively influenced the market. For instance, semiconductor leader Nvidia saw a minor decline of 0.1%, while Meta Platforms fell by 0.7%. Amazon and Netflix also faced losses, down 0.6% and 1.1% respectively.
Tesla emerged as one of the more significant decliners within the S&P 500, dropping by 1.9%. On a more positive note, health care stocks provided support for the market’s performance, with CVS Health climbing by 1.7% and Walgreens Boots Alliance achieving a notable 3% increase as the highest riser among S&P 500 stocks.
Several retail chains also reported gains; Target’s stock increased by 2.8%, Best Buy gained 2.2%, and Dollar Tree saw a rise of 2.7%. Retailers are eager for strong sales figures this holiday season, especially since the day after Christmas is typically one of the ten busiest shopping days of the year. Consumers often flock online or to physical stores to redeem gift cards and hunt for deals.
Stocks of U.S.-listed Honda and Nissan rose by 4% and 16% respectively. This surge followed the announcement of discussions between the two Japanese automakers regarding a potential merger earlier in the week.
The labor market also made headlines, with the Department of Labor reporting that applications for unemployment benefits remained stable last week, although continuing claims reached their highest mark in three years.
In the bond market, Treasury yields mainly trended lower, with the yield on the 10-year Treasury dropping from 4.59% to 4.57% since late Tuesday.
Major European markets remained closed, including those in Hong Kong, Australia, New Zealand, and Indonesia. Trading activity is expected to be subdued this week due to a scarce schedule of economic data.
Nevertheless, U.S. markets typically receive an end-of-year boost, despite lower trading volumes. Historically, the final five trading days of the year and the first two days in the new year average a gain of 1.3% since 1950.
This month, the U.S. stock market has experienced some losses compared to the gains following President-elect Donald Trump’s Election Day victory, which spurred optimism for quicker economic growth and relaxed regulations conducive to increased corporate profits. However, concerns are emerging about Trump’s inclination toward tariffs and other measures that could lead to inflation, a rise in U.S. government debt, and challenges for global trade.
On the positive side, the U.S. market is still projected to deliver robust returns for 2024. Currently, the S&P 500 is up approximately 26% this year, remaining close to an all-time high reached earlier this month, which was one of 57 record highs observed this year.
Investors will have a few significant economic reports to look forward to next week, including data on pending home sales and home prices, as well as insights into U.S. construction spending and manufacturing activity.
