On the first day of trading in the new year on January 2, 2025, traders worked on the trading floor of the New York Stock Exchange (NYSE).
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This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
U.S. markets start the year in the red
The U.S. stock market started the year in a gloomy mood; All major indexes fell Thursday, giving up early gains. this dollar index The highest in more than two years. Pan-European Stoke 600 The index rose 0.6%, Reversal of previous losses. While the European banking index fell 0.3%, oil and gas stocks led a 2.3% gain.
Tesla volume reverses gains
shares Tesla Shares of the company fell 6.1% after the company reported total deliveries for the fourth quarter of 2024 annual reduction. Not only was this the first decline in annual deliveries for Tesla, but the number was also lower than expected, according to consensus estimates compiled by StreetAccount. Deliveries are the closest thing Tesla reports to sales.
Meta’s new president of global affairs
Yuan Joel Kaplan, the current vice president for policy and a former Republican staffer, will replace Nick Clegg, the former British deputy prime minister, as president of global affairs. This is the logo of a tech company position yourself U.S. President-elect Trump’s incoming administration in Washington.
Russian natural gas supply halted
Ukraine stops supplying Russian natural gas to several European countries on New Year’s Day widely expected moveRussian state-owned energy giant Gazprom Confirmed Wednesday. European Commission explain It has been working to ensure the 27-nation bloc is prepared for such a scenario – although some are more at risk than others.
(PRO) Mood approaches euphoric levels
Despite the rough ending to December, investor optimism has only grown. Tracking Barometer Bank of America Shows investor sentiment is approaching optimism – but the opposite is true, sell signal. The bank’s equity and quantitative strategist Savita Subramanian explains what this means for investors.
bottom line
All major stock indexes opened higher on the first trading day of the new year, raising hopes for an optimistic start to 2025.
But just as workers shrugged off New Year’s festivities and headed back to their offices glumly, the stock market lost its luster and began to fall, closing lower.
this Dow Jones Industrial Average Down 0.36% S&P 500 Index down 0.22%, Nasdaq Index down 0.16%. Thursday’s losses mean the S&P and Nasdaq have closed lower for five consecutive sessions, their longest losing streak since April.
Possible culprit? Treasury yields rose. After initial immersion, 10-Year Treasury Bond Yield It began to climb, and as of 12 noon US time, it was close to 4.6%. This coincided with the beginning of the stock market’s decline: the S&P 500 fell about 60 points between 12 noon and 1 p.m.
While 10-year Treasury yields are eventually leveling off, persistently high yields pose a threat to stocks because they represent a safer way for investors to store cash. When Treasury bonds offer a guaranteed return of 4.6%, the risks of betting on stocks seem less attractive.
U.S. Treasuries may be more attractive this year, as analysts don’t expect the S&P to gain anywhere near 23.31% in 2024. CNBC Market Strategist Survey On sale in December.
Against this backdrop, stocks may not adequately compensate investors for the risks associated with holding bonds.
As Max Ketner, HSBC’s “The Fed’s hawkish turn is driving yields higher, triggering what we call danger territory,” the chief multi-asset strategist wrote in a note Thursday.
Still, Ketner believes that given fundamentals remain solid, market volatility now “should create an attractive entry point — with the right Goldilocks backdrop that we think (the first half of 2025) will bring.”
Even a highway leading to a dangerous area must eventually cross it to reach another destination.
—CNBC’s Lisa Kailai Han, Sarah Min, Jesse Pound and Christina Cheddar Berk contributed to this report.
