S&P 500’s Losing Streak Extended as Decline Continues into the New Year’s First Trading Day

Forex - Stocks experienced a volatile session in the first trading day of the new year on Wall Street, continuing the decline seen at the end of 2024. The Dow Jones Industrial Average closed down 151.95 points, or 0.36%, at 42,392.27. The S&P 500 fell by 0.22%, finishing the day at 5,868.55. The Nasdaq Composite dropped by 0.16% to 19,280.79.

Both the S&P 500 and Nasdaq recorded their longest losing streak since April with five consecutive sessions of declines. Tech giant Apple (NASDAQ:AAPL) weighed down the market with a 2.6% drop. Tesla fell 6% after reporting a decline in annual deliveries for 2024. Chipmaker Nvidia rose by 3%, helping to somewhat offset the declines in other Big Tech stocks.

Thursday's trading activity followed a poor note for stocks, closing out what was otherwise a solid year for 2024. The S&P 500 rose 23%, but it marked the first time since 1966 that the year ended with four consecutive days of losses.

Edward Jones senior investment strategist Angelo Kourkafas told CNBC, "If you think about the market taking two steps forward and one step back, we're currently in a stage of taking one step back after experiencing a really bright period in 2024. Valuations and sentiment have shifted to an optimistic exuberance, so we're seeing the market work in these overbought conditions in the short term."

SoFi (NASDAQ:SOFI) head of investment strategy Liz Young Thomas also stated, "If we don't want to buy at all-time highs, you can still earn good money in cash right now. Let it sit there, wait for a better entry point, and look for that in specific stocks."