Global Market Jitters as Stocks Stumble and Dollar Soars

Global stocks experienced a downturn on Thursday as initial gains diminished. The U.S. labor market showed resilience with unemployment claims dropping. The dollar reached a two-year high, while Wall Street declines were led by the consumer sector and Tesla's downfall. European stocks saw gains, buoyed by energy sector performance.

Global stock markets took a hit on Thursday, as initial gains evaporated, continuing the downward trend into the new year. The dollar surged to a two-year high, driven by solid U.S. labor market data, as unemployment claims fell to their lowest in eight months. Wall Street posted broad declines, with the S&P 500 set for its fifth consecutive drop, the longest losing streak since April.

The downturn in U.S. stocks was primarily led by the consumer discretionary sector, with a notable 6% fall in Tesla shares following a decline in the electric vehicle maker's annual deliveries. The Dow Jones dropped 269.84 points, or 0.63%, the S&P 500 fell 34.79 points, or 0.59%, and the Nasdaq Composite shed 120.55 points, or 0.63%.

Despite the rocky start for European stocks, the session ended on a positive note, boosted by energy sector gains. The dollar's strength, driven by expectations of continued U.S. economic growth, outpaced other currencies, with the euro and sterling seeing significant declines against the greenback.

(With inputs from agencies.)