On the first trading day of 2025, US benchmark equity indexes experienced a downward trend, with both the S&P 500 and the Nasdaq Composite feeling the pressure from a significant sell-off in Tesla shares. The technology-focused Nasdaq and S&P 500 both dipped by 0.2%, closing at 19,280.8 and 5,868.6 respectively on Thursday.
Meanwhile, the Dow Jones Industrial Average faced a more substantial decline of 0.4%, ending at 42,392.3. Consumer discretionary sectors took the hardest hit, while the energy sector emerged as the only category demonstrating gains. Markets were closed on Wednesday in observance of New Year's Day, marking the start of 2025's trading on a shaky note. In corporate developments, Tesla shares plunged by 6.1%, making it the weakest performer on both the S&P 500 and the Nasdaq.
This downturn followed the company's report of a decline in vehicle deliveries year-over-year for 2024, with the fourth-quarter figures falling short of Wall Street's expectations. Boeing also faced challenges, with its stock suffering a notable drop of 2.9%, marking it as the poorest performer on the Dow and ranking among the worst on the S&P 500. On a more positive note, Constellation Energy announced securing a 10-year, $840 million contract aimed at supplying power to over 13 federal agencies.
This development resulted in an impressive share price increase of 8.4%, positioning it as the leading gainer on the Nasdaq and the second-best performer on the S&P 500. Additionally, Nvidia made headlines by investing a staggering $1 billion in artificial intelligence enterprises last year. Reports indicate that the chip-making titan's shares rose by 3% on Thursday, earning it the title of top gainer on the Dow. In the realm of yields, the US 10-year yield saw a minor dip, falling 1.4 basis points to settle at 4.56%.
Conversely, the two-year rate remained relatively stable at 4.25%. From an economic perspective, the US manufacturing sector showed continued contraction in December, attributed to decreases in both output and new orders. Sentiment within the sector reached its lowest point since August, according to S&P Global, which conducted a survey revealing these findings.
The Chief Business Economist for S&P Global Market Intelligence, Chris Williamson, commented, "While November had shown signs of a near-stabilization of order books due to reduced uncertainty surrounding the presidential election, resulting in reviving customer demand, this reprieve has proven to be short-lived." Furthermore, the latest government data indicated an unexpected decline in weekly applications for unemployment insurance in the US, as well as a drop in continuing claims. Though this reduction in both initial and continuing claims is seen as a positive sign, analysts from Jefferies cautioned against excessive optimism, citing the high seasonal volatility typical of this time of year. The Mortgage Bankers Association reported a steep decline in mortgage applications over the two weeks ending December 27, as interest rates for all loan types rose sharply. In commodity markets, West Texas Intermediate crude oil increased by 2% to reach $73.13 per barrel on Thursday.
The Energy Information Administration reported a decrease in commercial crude stockpiles in the US, citing a drawdown of 1.2 million barrels to a total of 415.6 million barrels for the week ending Friday, which contrasts with the Bloomberg poll's estimate of a 2.5 million barrel draw. Gold prices saw a positive trend as well, rising by 1.2% to $2,671.50 per troy ounce, while silver prices jumped by 2.6%, reaching $29.99 per ounce.
The noteworthy figures from the market are: $US30, $US500, $TSLA, $BA, $CEG, $NVDA, and $SPGI..