4:07pm: Santa Claus rally slows
Wall Street ended Thursday on mixed ground as the market struggled to maintain momentum following the Christmas holiday break.
The day's trading was characterized by thin volume and modest movements across the major indices.
The Dow eked out a small gain, rising 29 points or 0.1% to close at 43,326. This slight increase allowed the blue-chip index to continue its upward trajectory, building on the gains from earlier in the week.
The S&P 500 remained essentially flat, dipping just 2.4 points to end the session at 6,038. This minor decline halted the benchmark index's recent streak of positive performances.
The tech-heavy Nasdaq Composite experienced a marginal loss, falling 11 points or 0.1% to finish at 20,020. This slight downturn came after the index had posted strong gains in previous sessions, driven by the robust performance of large-cap technology stocks.
Despite the mixed results, the major indices remained on track for a positive week, with the S&P 500 up 1.8% and the Dow gaining about 1% since Monday.
The day's economic data provided some insights into the labor market. Initial jobless claims for the week ended December 21 came in at 219,000, slightly better than the expected 225,000. However, continuing claims rose to 1.91 million, reaching their highest level since November 2021, potentially signaling some cooling in the job market.
12:20pm: Year-end rally continues
The major indices posted slight upward movement following earlier morning volatility, with the Dow Jones trading at 43,372, up 0.2%, the S&P 500 hovering around 6,049, up 0.2%, and the Nasdaq reaching 20,065, also up 0.2%.
The session was marked by thin volumes and cautious sentiment as investors approached the year-end. Bitcoin remained volatile, trading below $96,000 and impacting cryptocurrency-related stocks.
Notable stock movements included a 4% rise in GameStop shares and a nearly 3% increase in Broadcom, which continued its strong performance for the year.
Crypto-related stocks showed mixed trends, with slight declines in MicroStrategy and Coinbase.
As the traditional "Santa Claus rally"—encompassing the last five trading days of the year and the first two days of January—progresses, investors remain cautiously optimistic about closing out 2024 on a positive note.
9:40am: Investors take profits after Christmas rally
US markets opened lower on Thursday, as trading resumed after the Christmas holiday.
The Dow fell 0.3% to 43,177, the S&P 500 declined 0.2% to 6,028, and the Nasdaq dropped 0.2% to 20,0017.
This slight pullback comes after a strong start to the "Santa Claus rally" on Tuesday, where all three major indexes saw gains of approximately 1%.
The market's downturn may be attributed to profit-taking following the recent rally and investors digesting the limited economic data available this week. Traders are keeping a close eye on the upcoming Initial Jobless Claims report, which could provide insights into the current state of the labor market.
Despite today's dip, the S&P 500 remains near its all-time highs, having recovered from losses triggered by the Federal Reserve's statements last week.
The index has seen a remarkable year-to-date rise of 27%, highlighting the strong performance of U.S. equities in 2024.