- Indexes fell Thursday in their first trading session after Christmas.
- The losses follow back-to-back gains earlier in the week as traders hope for a Santa Claus rally.
- Jobless claims came in lower than expected while continuing claims surged to a three-year high.
Stock indexes fell Thursday in their first trading session after Christmas to pare back some gains from a so-called Santa Claus rally earlier in the week.
The Dow Jones Industrial Average shed around 130 points to open 0.3% lower. The S&P 500 and the Nasdaq also fell, down 0.3% and 0.2% respectively.
The market’s downbeat open follows back-to-back gains earlier in the week before closing early on Christmas Eve. Markets remained closed on Christmas Day.
Traders have hoped for a so-called Santa Claus rally, which kicked off on Tuesday and stretches from the last five trading days of the year into the first two of January.
Indexes have historically fared well during this time, and if that proves true this year, it could put the market on course for another year of strong gains, analysts say.
“History says, but does not guarantee, that if the market starts out on the right foot, it rarely trips and falls for the full year,” CFRA Research’s chief investment strategist Sam Stovall said.
Initial jobless claims, meanwhile, came in lower than expected at 219,000 for last week compared to consensus estimates of 225,000. Continuing claims, though, surged to 1.91 million, reaching their highest level in over three years.
Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Thursday:
Here’s what else is happening:
