Wall Street drifts to a mixed close in thin trading after Christmas pause
Stock indexes drifted to a mixed finish on Wall Street as some heavyweight technology and communications sector stocks offset gains elsewhere in the market.
The Standard & Poor’s 500 index slipped less than 0.1% on Thursday, its first loss after three straight gains. The Dow Jones industrial average added 0.1%, and the Nasdaq composite fell 0.1%. Trading volume was lighter than usual as U.S. markets reopened following the Christmas holiday.
Chip company Broadcom rose 2.5%, Micron Technology climbed 1.3% and Adobe gained 0.8%.
Although tech stocks overall were in the green, some heavyweights were a drag on the market. Semiconductor giant Nvidia, whose enormous valuation gives it an outsize influence on indexes, slipped 0.1%. Meta Platforms fell 0.5%, Amazon slipped 0.4% and Netflix gave up 0.7%.
The Federal Reserve on Wednesday made another cut in interest rates, but dialed back expectations for lowering rates in the near future.
Tesla was among the biggest decliners in the S&P 500, down 1.4%.
Healthcare stocks helped lift the market. CVS Health rose 1.4% and Walgreens Boots Alliance rose 3.9% for the biggest gain among S&P 500 stocks.
Several retailers also gained ground. Target rose 3.1%, Ross Stores added 1.8%, Best Buy climbed 2.5% and Dollar Tree gained 3.6%.
Traders are watching to see whether retailers have a strong holiday season. The day after Christmas traditionally ranks among the top 10 biggest shopping days of the year, as consumers go online or rush to stores to cash in gift cards and raid bargain bins.
U.S.-listed shares in Honda and Nissan rose 4.2% and 15.9%, respectively. The Japanese automakers announced this week that the two companies are in talks to combine.
Traders got a labor market update. U.S. applications for unemployment benefits held steady last week, though continuing claims rose to the highest level in three years, the Labor Department reported.
Treasury yields turned mostly lower in the bond market. The yield on the 10-year Treasury fell to 4.58% from 4.59% late Tuesday.
Trading was expected to be subdued this week with a thin slate of economic data on the calendar.
President-elect Trump has vowed that his return to the White House will bring about a resurgence of blue-collar work across the country.
Still, U.S. markets have historically received a boost at year’s end despite lower trading volumes. The last five trading days of each year, plus the first two in the new year, have brought an average gain of 1.3% since 1950.
This month, the U.S. stock market has lost some of its gains since President-elect Donald Trump’s win on election day, which raised hopes for faster economic growth and more lax regulations that would boost corporate profits. Worries have risen that Trump’s preference for tariffs and other policies could lead to higher inflation, a bigger U.S. government debt and difficulties for global trade.
Even so, the U.S. market remains on pace to deliver strong returns for 2024. The benchmark S&P 500 is up roughly 26% this year and remains near its most recent all-time high it set earlier this month — its latest of 57 record highs this year.
Veiga writes for the Associated Press. AP Business Writers Elaine Kurtenbach and Matt Ott contributed.
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