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Dow Jones Index Gives Up Gains, Turns Lower in First Session of 2025
The Dow Jones Industrial Average gave up early gains in the first trading session of the new year 2025 on Wall Street on Thursday, Jan. 2, turning lower, while the S&P 500 and Nasdaq rose on hopes that the market can continue the momentum that has propelled the S&P 500 to two straight years of annual gains above 20%.
The Dow Jones Industrial Average fell 37 points, or 0.1%, while the S&P 500 gained 0.1%. The Nasdaq Composite Index rose about 0.2%.
Energy stocks helped boost the market in early trading on Thursday. Chevron shares rose 1.4%, and renewable energy stock Enphase Energy jumped more than 4%.
However, some of the hottest technology stocks of 2024 suffered in early trading. Tesla shares fell more than 5% after reporting lower annual deliveries in 2024. Defense technology stock Palantir fell about 2%.
The tech-driven nature of the market rally through 2024 has raised some concerns that the move is unsustainable, but more bullish investors point to continued economic strength and earnings growth as reasons the market still has room to run.
“The argument that irrational euphoria, instincts and bubble-like optimism were the primary drivers of the market rally seems largely inconsistent with stronger data and quieter recession risks,” UBS strategist Jonathan Golub said in a note to clients on Thursday.
“Either way, investors are clearly overly optimistic as we head into 2025. That euphoria may be cause for concern. (But) 2025 could be another year of success.”
