Stocks stumble as Tesla weighs, dollar hits 2-yr high
Thu January 2, 2025 4:35 PM
All three indexes enjoyed a very nice bump in the morning, the Dow up over 350 points, lending hope that the Santa Claus rally may still be in play. But those hopes were dashed as early 10 a.m. when they all started downhill again, reaching break-even around noon and diving into the red the rest of the session. The S&P and Nasdaq saw their 5th straight day of declines, their longest stretch since April. And despite unemployment benefits dropping to their lowest in two years, and well below forecast, showing the economy continues to be resilient and strong, consumer discretionary, the main engine of this economy, fell.
But that and the dollar hitting a two-year high wasn’t enough to counteract Tesla’s 6.08% drop when they announced its first decline in annual deliveries. But the U.S. dollar continues to dominate the global currency markets as today’s Canadian currency specialist said, “The U.S. stock market has really put to shame every other global market. The dollar is the only game in town until there is a genuine tumble in the U.S. economy.” However, concerns about future rate cuts and worries about Trump’s incoming tariff policies has sent Treasury yields higher and created a drag for equities. Per the CBOE, volume came in at 15.3 billion.
DJ: 42,544.22 -29.51 NAS: 19,310.79
-175.99 S&P: 5,881.63
-25.31 12/31
DJ: 42,392.27 -151.95 NAS: 19,280.79
-30.00 S&P: 5,868.55
-13.08 1/2
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