Last Updated: 4:03 PM EST
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Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 0.17%, 0.22%, and 0.36%, respectively.
Earlier today, The Atlanta Federal Reserve updated its latest GDPNow reading, which allows it to estimate GDP growth in real-time. The “nowcast” becomes more accurate as more economic data is released throughout the quarter. Currently, it estimates that the economy will expand by about 2.6% in the fourth quarter. This is lower than its previous estimate of 3.1%, which can be attributed to recent releases from the U.S. Census Bureau.
In addition, the Department of Labor released its Initial Jobless Claims report, which came in better than expected. In the past week, 211,000 people filed for unemployment insurance for the first time. Expectations were for 222,000 individuals.
Furthermore, Continuing Jobless Claims, which measures the number of unemployed people who qualify for unemployment insurance, came in at 1.844 million. This was below the forecast of 1.89 million and lower than last week’s print of 1.896 million. It’s worth noting that Continuing Jobless Claims have been on an overall uptrend since hitting record lows in September 2022, as the layoffs from large companies continue to impact the workforce.
Moreover, the Census Bureau put out its U.S. Construction Spending report, which measures the month-over-month change in construction spending. During November, the amount of spending flat at 0%, which was lower than the expected growth of 0.3% predicted by forecasters.
First Published: 4:13 AM EST
U.S. futures edged higher on Thursday morning, indicating a strong start to trading on the first day of 2025. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.74%, 0.43%, and 0.54%, respectively, at 3:34 a.m. EST, January 2.
Investors are eager to capitalize on the solid performance of 2024, a year characterized by notable gains in the major indices. The Dow Jones, the S&P 500, and the Nasdaq Composite rose about 13%, 23.3%, and 28.6%, respectively. The upside was largely driven by optimism about artificial intelligence and the impact of interest rate cuts.
However, market momentum slowed towards the end of 2024 as the Federal Reserve maintained a cautious stance on interest rate cuts, citing concerns about persistent inflation. Also, hopes for a traditional “Santa Claus rally” were dampened.
Heading into 2025, Carson Group’s Chief Market Strategist Ryan Detrick remains optimistic about the U.S. stock market, citing robust corporate earnings and profit margins. He also expresses minimal concern about a recession, despite growing uncertainty surrounding potential policy shifts under Donald Trump’s administration.
Moving on, investors are awaiting the release of Weekly Jobless Claims data for the week ended December 27, 2024, to gain insights into the health of the labor market. Also, November’s construction spending report is set for release today.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.551% at the time of writing. At the same time, WTI crude oil futures are trending higher, hovering near $71.95 per barrel as of the last check.
Elsewhere, European indices opened higher on Thursday morning as traders began the year on a positive note.
Asia-Pacific Markets Ended Lower on Thursday
Asia-Pacific indices traded in the red today. Investors’ sentiment was hurt after private survey data revealed slower growth in China’s manufacturing sector in December.
At the same time, Hong Kong’s Hang Seng Index was down 2.18%. Also, China’s Shanghai Composite and Shenzhen Component indices declined 2.66% and 3.14%, respectively.
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