Global stocks fell on Thursday, extending a year-end slide into 2025’s first trading session. The U.S. dollar surged to a two-year high as labor market data reinforced optimism about the American economy’s strength.
Wall Street saw broad declines, with the S&P 500 and Nasdaq logging their fifth consecutive losing session. The Dow Jones Industrial Average dropped 151.95 points (-0.36%) to 42,392.27, while the S&P 500 fell 13.08 points (-0.22%) to 5,868.55. The Nasdaq Composite slid 30.00 points (-0.16%) to 19,280.79.
The consumer discretionary sector led losses, falling 1.27%, weighed down by a 6.08% drop in Tesla after reporting its first annual delivery decline.
The U.S. Labor Department revealed that new unemployment claims fell to an eight-month low of 211,000, underscoring a robust labor market. Keith Buchanan of Globalt Investments noted the labor market’s critical role in sustaining consumer spending amid inflationary pressures.
In Europe, stocks ended higher, buoyed by energy shares, with the STOXX 600 gaining 0.6%. However, MSCI’s global stock index dipped 0.20%.
The dollar index climbed 0.67% to 109.27, hitting its highest level since November 2022, as robust U.S. growth expectations outshone global peers. The euro dropped 0.89% to $1.0263, while the dollar strengthened against the yen and sterling.
Oil prices rose on optimism about China’s economic outlook, with Brent crude up 1.73% to $75.93 per barrel and U.S. crude gaining 1.97% to $73.13.
As the new year begins, markets are navigating mixed signals, including expectations of Federal Reserve policy shifts and concerns over potential inflationary pressures from U.S. policy changes under President-elect Donald Trump.
Related Readings:
#Global #Stocks #Slip #U.S #Labor #Market #Resilience #Bolsters #Dollar