Tags: stocks | 2025 | first | trading | session

Wall St Ticks Down on 1st Trading Session of 2025

Wall St Ticks Down on 1st Trading Session of 2025

A trader works on the floor at the New York Stock Exchange in New York, Jan. 2, 2025. (Seth Wenig/AP)

Thursday, 02 January 2025 04:11 PM EST

Wall Street see-sawed to a lower close Thursday amid choppy trading, as investors embarked on the new year facing the cross-currents of solid labor market data, a rising dollar and tumbling Tesla shares.

All three major U.S. stocks ended the session in negative territory, a reversal of an earlier rally but off session lows.

"We had some macro news but somewhat mixed and you know we have a very strong dollar today," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "There are a few hurdles over the next couple of weeks and those are next Friday’s employment data and the beginning of fourth quarter earnings."

"In the short term, we’re looking at choppiness and a struggle for direction until we get those hurdles out of the way," Cardillo added.

Shares of Tesla sank after reporting its first annual drop in deliveries, as incentives failed to stem a decline in demand for its aging line-up of electric vehicles.

A report from the Labor Department showed initial and continuing claims for unemployment benefits both fell last week, supporting the narrative of a solid jobs market and adding weight to the possibility that the U.S. central bank could let its key interest rate stand at this month's policy meeting.

Looking past uncertainties regarding the pace of interest rate cuts from the Federal Reserve, policies to be enacted by the incoming Donald Trump administration and various hot spots of geopolitical unrest, market participants chose to focus on the strength of the United States economy.

Wall Street's main indexes notched double-digit gains in 2024, with the benchmark S&P 500 recording its best two-year run since 1997-1998. Those gains were driven by the U.S. Federal Reserve's first rate cuts in three-and-a-half years, the ongoing artificial intelligence boom and expectations of pro-business policies from the incoming Trump administration.

The rally lost steam in the closing weeks of 2024, with the S&P 500 and the Dow marking declines for December, as markets priced in the likelihood of fewer rate cuts from the Fed this year.

According to preliminary data, the S&P 500 lost 12.86 points, or 0.22%, to end at 5,868.77 points, while the Nasdaq Composite lost 29.78 points, or 0.15%, to 19,281.01. The Dow Jones Industrial Average fell 145.09 points, or 0.34%, to 42,399.13.

The S&P and the Nasdaq have now posted five consecutive sessions in the red, their longest losing streak since mid-April.

Apple shares slid as the gadgetmaker offered rare discounts in China in order to compete against domestic rivals.

Crypto stocks such as Coinbase, MicroStrategy and MARA Holdings advanced, tracking higher Bitcoin prices.

© 2025 Thomson/Reuters. All rights reserved.


StreetTalk
Wall Street see-sawed to a lower close Thursday amid choppy trading, as investors embarked on the new year facing the cross-currents of solid labor market data, a rising dollar and tumbling Tesla shares.
stocks, 2025, first, trading, session
434
2025-11-02
Thursday, 02 January 2025 04:11 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved