Wall Street Woes: Stocks Dip Amid Economic Crosswinds

Wall Street faced a turbulent session with all major U.S. stock indexes ending lower due to strong labor market data, a firm dollar, and declining Tesla shares. Investors are cautious with upcoming employment data and fourth-quarter earnings. Meanwhile, crypto stocks rose amidst a Bitcoin price surge.

Wall Street took a hit on Thursday, closing the day in the red after a volatile trading session. Investors navigated strong labor market data, a firmer dollar, and a drop in Tesla shares. The three main U.S. stock indexes ended negatively, reversing an earlier rally though staying above session lows.

Peter Cardillo, Spartan Capital Securities' chief market economist, pointed to mixed macroeconomic news, including a strengthened U.S. dollar, while highlighting future hurdles. "We're looking at choppiness and a struggle for direction until we get those hurdles out of the way," Cardillo noted, alluding to next week's employment data and the start of fourth-quarter earnings.

Tesla's stock fell significantly following its first annual delivery drop, emphasizing a declining demand for its electric vehicle lineup. Despite solid labor market news from the Labor Department indicating fewer unemployment claims, market participants remained fixated on the broader economic strengths, contemplating policy moves by the incoming Trump administration amidst geopolitical challenges.

While Wall Street enjoyed significant gains in 2024, driven by Federal Reserve rate cuts and the AI sector's boom, recent weeks saw the momentum waning with fewer Fed rate cuts anticipated. On Thursday, the S&P 500 shed 12.86 points to close at 5,868.77, the Nasdaq Composite fell 29.78 points to 19,281.01, and the Dow Jones lost 145.09 points, ending at 42,399.13.

With the S&P and Nasdaq witnessing a five-session losing streak, the longest since mid-April, Apple shares felt pressure due to competitive discounting in China. However, crypto stocks like Coinbase, MicroStrategy, and MARA Holdings gained along with Bitcoin's rising value.

(With inputs from agencies.)