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Stock indexes reversed gains from earlier in the day to close lower on Thursday, as volatile trading in the first session of the new year pushed the market to its fifth consecutive loss.
The Dow Jones Industrial Average shed 150 points, while the benchmark S&P 500 and the Nasdaq Composite also closed lower.
A few tech giants led the downturn, with Apple closing 2.6% lown and Tesla falling 6% after reporting its first annual decline in electric vehicle deliveries. Nvidia, meanwhile, rose over 2%, with other chip stocks including Micron Technologies and Marvell Technology also ending higher.
The losses have dimmed investors' hopes for the seasonal Santa Claus rally, a period stretching from the last five trading days of the year into the first two of January.
Markets typically fare well during this time, and traders had hoped that such a rally would set the market up for a strong start to 2025.
"History says, but does not guarantee, that if the market starts out on the right foot, it rarely trips and falls for the full year," CFRA Research's chief investment strategist Sam Stovall said in a note last month.
Still, analysts appear bullish that this year will bring more gains for stocks, though likely at a slower pace than the last two years.
"While a four-day losing streak into year-end has jeopardized the Santa Claus Rally, longer-term momentum remains strong," LPL Financial's Adam Turnquist said in a Thursday note.
The average 2025 year-end price target for the S&P 500 this year is 6,539, implying potential gains of around 11% from current levels after a 23% gain last year.
Initial jobless claims, meanwhile, fell unexpectedly to an eight-month low of 211,000 last week, marking a drop of 9,000. Economists had expected 222,000 claims for the week.
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Thursday:
Here's what else is happening:
In commodities, bonds, and crypto:
