US close: Nasdaq hits five-week low as losing streak continues
The end-of-year decline on US stock markets continued into 2025, with all three Wall Street benchmarks registering yet more losses and the Nasdaq hitting a five-week low.
Markets pushed higher shortly after the opening bell, but gains were erased by midday. With little in the way of corporate news, the focus was on a mixed batch of economic data, while bond yields stayed close to seven-month highs and oil prices surged.
The Dow fell for the fourth straight session, slipping 0.4%, while the losing streak on the S&P 500 and Nasdaq entered its fifth day, with both indices losing 0.2%. For the Nasdaq in particular, the tech-heavy benchmark is now trading at its lowest mark (19,280.79) since 29 November.
In economic news, initial jobless claims fell to 211,000 in the week ended 28 December, down from a revised 220,000 (initial estimate: 219,000) the week before. This was the fourth straight decline in weekly claims, below the consensus forecast of 222,000 and the lowest weekly reading since the week ended 27 April 2024.
"The claims data are consistent with a labor market that is strong enough to allow the Federal Reserve to proceed with rate cuts at a more measured pace in 2025. The level of initial claims is consistent with a relatively low pace of layoffs, and while the level of continued claims suggests unemployed workers face some challenges finding new work, the recent decline in continued claims is encouraging," said Nancy Vanden Houten, lead US economist at Oxford Economics.
The US manufacturing purchasing managers' index slipped to 49.4 last month, down from 49.7 in November but up from the flash reading of 48.3 published two weeks ago. While this was a better than economists' predictions for no change form the initial estimate, this was still the sixth straight month below the key 50-point level which separates growth from contraction.
Meanwhile, US construction spending was flat in November at $2,153bn, slowing from a revised 0.5% gain in October, missing the consensus estimate of +0.3%.
Bond yields were more or less flat: the 10-year US Treasury yield fell 1.1 basis point to 4.565%. Yields have been rangebound since mid-December after strong gains in recent months and currently trade at levels not seen since May 2024.
"The question for the next few weeks seems to be whether the recent pickup in bond yields is due to concerns of future inflationary pressures, fanned by Trump’s tariff threats, or for the more benign expectation of stronger economic growth ahead," said David Morrison, senior market analyst at Trade Nation.
Adding to those concerns of inflationary pressures were oil prices on Thursday, with WTI crude jumping nearly 2% to $73.12 a barrel – its highest level since mid-October – on the back of optimism surrounding the economic recovery in China and the recent big drawdown of US crude inventories.
Market movers
Tesla was out of favour, dropping 6% on the news that the electric carmaker's annual deliveries declined for the first time in more than a decade in 2024. The company achieved a quarterly record of 495,570 global deliveries in the fourth quarter, but that was still lower than the 515,000 needed for annual deliveries to surpass 2023's levels.
Heavyweights Apple and Microsoft were also registering losses by the close. However, Magnificent Seven peer Nvidia were firmly higher on the back of positive comments from Loop Capital, which pointed to more upside for the stock.
Down 3% was Boeing as the company continues to make headlines for the Jeju Air disaster, after a 737-800 aircraft crashed in South Korea on Sunday killing 179 people.
Dow Jones - Risers
Chevron Corp. (CVX) $146.71 1.29%
McDonald's Corp. (MCD) $292.51 0.90%
Intel Corp. (INTC) $20.22 0.85%
American Express Co. (AXP) $298.43 0.55%
Verizon Communications Inc. (VZ) $40.21 0.55%
3M Co. (MMM) $129.70 0.47%
Goldman Sachs Group Inc. (GS) $574.97 0.41%
JP Morgan Chase & Co. (JPM) $240.00 0.12%
International Business Machines Corporation (CDI) (IBM) $219.94 0.05%
Dow Jones - Fallers
Boeing Co. (BA) $171.94 -2.90%
Nike Inc. (NKE) $73.67 -2.64%
Apple Inc. (AAPL) $243.85 -2.62%
Walgreens Boots Alliance, Inc. (WBA) $9.19 -1.50%
Dow Chemical Co. (DOW) $39.55 -1.45%
Salesforce.Com Inc. (CRM) $330.66 -1.10%
Procter & Gamble Co. (PG) $165.98 -1.00%
Caterpillar Inc. (CAT) $359.77 -0.82%
Microsoft Corp. (MSFT) $418.58 -0.69%
Coca-Cola Co. (KO) $61.84 -0.67%
S&P 500 - Risers
CenturyLink Inc. (LUMN) $5.61 5.65%
Western Digital Corp. (WDC) $61.90 3.81%
Micron Technology Inc. (MU) $87.33 3.77%
Helmerich & Payne Inc. (HP) $33.12 3.44%
Nektar Therapeutics (NKTR) $0.96 3.33%
Williams Companies Inc. (WMB) $55.88 3.25%
Newmont Corporation (NEM) $38.37 3.09%
Nvidia Corp. (NVDA) $138.31 2.99%
NRG Energy Inc. (NRG) $92.75 2.80%
Coterra Energy Inc. (CTRA) $26.14 2.35%
S&P 500 - Fallers
PPG Industries Inc. (PPG) $115.42 -3.37%
Eastman Chemical Co. (EMN) $88.52 -3.07%
Boeing Co. (BA) $171.94 -2.90%
MGM Resorts International (MGM) $33.66 -2.86%
Gallagher Arthur J (AJG) $275.89 -2.80%
Robert Half Inc. (RHI) $68.51 -2.77%
Wynn Resorts Ltd. (WYNN) $83.80 -2.74%
Mohawk Inds Inc. (MHK) $115.92 -2.69%
Federal Realty Inv Trust (FRT) $108.95 -2.68%
Nike Inc. (NKE) $73.67 -2.64%
Nasdaq 100 - Risers
Qurate Retail Inc. (QRTEA) $0.38 14.27%
Western Digital Corp. (WDC) $61.90 3.81%
Mercadolibre Inc. (MELI) $1,765.00 3.80%
Micron Technology Inc. (MU) $87.33 3.77%
Liberty Global plc Series C (LBTYK) $13.58 3.35%
Nvidia Corp. (NVDA) $138.31 2.99%
Liberty Global plc Series A (LBTYA) $13.12 2.82%
Meta Platforms Inc. (META) $599.24 2.34%
Dollar Tree Inc (DLTR) $76.47 2.04%
Charter Communications Inc. (CHTR) $349.35 1.92%
Nasdaq 100 - Fallers
Tesla Inc (TSLA) $379.28 -6.08%
Trip.com Group Limited (TCOM) $64.77 -5.67%
Sirius XM Holdings Inc (SIRI) $22.10 -3.07%
Wynn Resorts Ltd. (WYNN) $83.80 -2.74%
Apple Inc. (AAPL) $243.85 -2.62%
American Airlines Group (AAL) $17.00 -2.47%
Workday, Inc. (WDAY) $251.84 -2.40%
Illumina Inc. (ILMN) $130.93 -2.02%
Baidu Inc. (BIDU) $82.70 -1.91%
Biogen Inc (BIIB) $150.00 -1.91%