As we turn the page from 2024 to 2025, stock markets are poised to start the new year on a positive trajectory. The current futures for the major indices indicate a promising opening, with the S&P 500 futures climbing by 0.7%.
After a substantial decline at the end of last year, traders may be inclined to seize stocks now available at relatively reduced prices. Recently, both the S&P 500 and the Nasdaq displayed a downward trend over four consecutive sessions, with the Nasdaq, heavily weighted towards technology stocks, closing New Year's Eve trading at its lowest point in a month.
Optimism concerning market prospects could ignite buying interest, especially as we approach President-elect Donald Trump's second inauguration later this month. However, trading volumes may not be at their fullest, as some traders continue their holiday respite following the New Year's Day break.
On the economic scene in the U.S., the Labor Department unveiled a report indicating a surprising decline in first-time claims for unemployment benefits for the week ending December 28th. Initial jobless claims decreased to 211,000, down by 9,000 from the revised figure of 220,000 from the previous week. This dip confounded economists who anticipated a rise to 222,000, contrasting with an initial report of 219,000 for the prior week. With this unforeseen drop, jobless claims have hit their lowest since April 27, 2024, when they stood at 209,000.
Stocks initially showed little direction on Tuesday but trended mostly downward as the day progressed. The Nasdaq, in particular, led this decline, sinking to its lowest closing level in a month. Specifically, the Nasdaq decreased by 175.99 points, or 0.9%, closing at 19,310.79, while the S&P 500 declined 25.31 points, or 0.4%, settling at 5,881.63. The Dow exhibited a more modest reduction, slipping by 29.51 points, or 0.1%, to close at 42,544.22.
Across international markets, performance was mixed in the Asia-Pacific region on Thursday. Notably, China's Shanghai Composite Index and Hong Kong's Hang Seng Index fell by 2.7% and 2.2%, respectively, whereas Australia's S&P/ASX 200 Index rose by 0.5%.
European markets mirrored this mixed trend. France's CAC 40 Index dipped by 0.4%, while Germany's DAX Index experienced a slight increase of 0.2%, and the UK's FTSE 100 Index advanced by 0.7%.
In the realm of commodities, crude oil futures are seeing a significant rise, up $0.91 to $72.63 per barrel, following a previous increase to $71.72. Concurrently, gold futures are on the upswing, gaining $12.40 to reach $2,653.40 per ounce after a prior leap to $2,641.
In currency exchanges, the U.S. dollar is trading at 157.02 yen, slightly down from Wednesday's 157.24 yen. Against the euro, the dollar is valued at $1.0325, compared to the previous day's $1.0356.
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