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E-mail Xinhua, December 20, 2024
U.S. stocks ended mixed on Thursday, as an early rebound for the stocks petered out by the end of the day.
The Dow Jones Industrial Average rose 15.37 points, or 0.04 percent, to 42,342.24, narrowly snapped its longest losing streak since 1974. The S&P 500 sank 5.08 points, or 0.09 percent, to 5,867.08. The Nasdaq Composite Index shed 19.92 points, or 0.10 percent, to 19,372.77.
Seven of the 11 primary S&P 500 sectors ended in red, with real estate and materials leading the laggards by losing 1.69 percent and 1.07 percent, respectively. Meanwhile, utilities and financials led the gainers by going up 0.48 percent and 0.40 percent, respectively.
The 10-year U.S. Treasury yield climbed above 4.5 percent for a second consecutive day, extending its impact on equities after a 13-basis-point surge in the previous session. Higher yields pressured stocks, adding to Wednesday's selloff.
The major indexes plunged after the Federal Reserve delivered a less dovish-than-expected stance in its latest policy update. "I think that this correction could last a bit," Paul Meeks, Harvest Portfolio Management's co-chief investment officer, said Thursday. "You've seen the marquee name Nvidia come down, so what I would expect people to do what I would recommend people to do is to maybe keep some powder dry."
Fresh economic data released Thursday painted a mixed picture of the U.S. economy. One report revealed that the economy grew at an annualized rate of 3.1 percent during the summer, a faster pace than previously estimated, underscoring its resilience despite the Federal Reserve's extended period of high interest rates earlier this year.
Additionally, the labor market remained robust, with fewer workers applying for unemployment benefits last week, a sign of ongoing strength in job availability.
However, the outlook for manufacturing took a hit, as a separate report showed that mid-Atlantic manufacturing activity contracted unexpectedly, defying economists' forecasts for growth.
The next key data before the holiday-shortened weeks will be the personal consumption expenditures (PCE) price index on Friday. With sticky inflation once again on the Federal Reserve's radar, the core PCE will be closely watched.
