S&P 500 with two >1% gains the first three days of a new year? It could happen today.
Haven't seen it happen since 2003.
Since WWII it has happened 8 times and the full year was higher all 8 times, up 13.4% on average.
— Ryan Detrick, CMT (@RyanDetrick) January 6, 2025
The stock market closed modestly lower in the first session of the new year Thursday, kicking off 2025 in the same way that 2024 ended: in the red. The Dow Jones Industrial Average dropped 0.4% for its fourth consecutive loss, while the S&P 500 lost 0.2%. For the S&P, it was the fifth straight drop and third consecutive session below 4,000 points.
Apple and Tesla were among the tech giants leading the decline.
The S&P 500 fell 1.5% the last 5 days of 2024, the worst end to a year since 2005. pic.twitter.com/bYVMg6oMnb
— Ryan Detrick, CMT (@RyanDetrick) January 6, 2025
Apple shares slid 1.3% amid concerns over supply chain disruptions in China, while Tesla dropped 2.6% on news of slowing vehicle sales in key markets.
Tech giants impact stock market slide
Despite broad-based sell-off in December, vast majority of global indices closed 2024 in black across asset classes; U.S. large caps reigned supreme, with S&P 500 soaring 25% in 2024 despite December’s 2.4% drop; outside U.S., China was best-performing major equity market with… pic.twitter.com/DA17kFk2gC
— Liz Ann Sonders (@LizAnnSonders) January 6, 2025
In related market news, the focus shifts to upcoming jobs data later this week, which investors hope might provide clearer insights into the state of the economy. Nvidia, however, bucked the trend by reaching record highs after unveiling new AI products during a presentation by CEO Jensen Huang. The weak performance follows a lackluster 2024, where many stocks struggled under the pressures of inflation and rising interest rates.
Analysts are cautious but hopeful for a market rebound later in the year as economic policies stabilize and corporate earnings improve. Investors are advised to monitor key economic indicators and remain diversified in their portfolios to navigate the volatility expected in early 2025. Overall, as the new trading year begins, market participants are keeping a close watch on economic data and corporate earnings reports to gauge the potential direction of stocks in the coming months.
