Wall Street Calm Amid Santa Claus Rally Hiccups

Amid post-Christmas trading, U.S. stocks dipped slightly despite the Santa Claus rally as uncertainties around President-elect Trump's policies lifted gold prices and Treasury yields. Concerns include Federal Reserve policies, Trump's tariffs, and geopolitical tensions. Jobless claims suggest challenges, while world stocks continue their upward trend.

Wall Street stocks experienced a mild downturn on Thursday, as U.S. benchmark Treasury yields hit their highest level since April amid light, post-Christmas trading. Despite the expected Santa Claus rally, which often boosts stocks during the holiday season, all three major U.S. stock indexes posted modest losses.

Gold prices saw an uptick due to uncertainties surrounding President-elect Donald Trump's policies, while the 10-year Treasury yield reached nearly an eight-month peak. Market expert Peter Cardillo from Spartan Capital Securities in New York noted the light trading volume and the impact of profit-taking on the recent rally.

Despite concerns about Federal Reserve policies, Trump's tariffs, and geopolitical tensions, the Nasdaq, S&P 500, and Dow maintained gains of 33%, 26%, and 14% in 2024. However, the job market showed signs of strain, with new unemployment claims falling below expectations but ongoing claims hitting their highest since November 2021.

(With inputs from agencies.)