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US stocks dip as \Santa Claus rally\ stalls, 10-year Treasury yields touch 8-month high

Wall Street stocks headed lower on Thursday and U.S. benchmark Treasury yields scaled the greatest level since April in light, postChristmas trading.

The modest but broad-based sell-off pulled all 3 major U.S. stock indexes decently lower regardless of the so-called Santa Claus rally, in which stocks typically get a holiday season increase from low liquidity, tax loss harvesting and financial investment of year-end benefits.

Unpredictabilities around President-elect Donald Trump's policies raised gold rates and helped send the 10-year Treasury yield to a nearly eight-month high.

It's light volume and now we are recuperating some earlier losses due to some revenue taking from Tuesday's rally, stated Peter Cardillo, primary market economist at Spartan Capital Securities in New York. I believe we remain in the Santa Claus rally, with a bit of a bump in the roadway here today, and it's. probably safe to say the year-end rally will continue.

With just a handful of trading days remaining in the year,. the Nasdaq, S&P 500 and the Dow have actually scored particular gains of. 33%, 26% and 14% in 2024.

The major concerns for 2025 are the degree of the Federal. Reserve's monetary alleviating, Trump's tariffs and other policies,. and different geopolitical stress.

On the financial front, new claims for welfare. came in a little listed below analysts' estimates, while ongoing claims. jumped to their largest number given that November 2021, recommending. laid off employees are having increasing problem discovering new. jobs.

The Dow Jones Industrial Average fell 28.97 points,. or 0.07%, to 43,268.06, the S&P 500 moved 4.50 points, or. 0.07%, to 6,035.54 and the Nasdaq Composite dropped. 18.10 points, or 0.09%, to 20,013.03.

MSCI's broadest index of Asia-Pacific shares outside Japan. edged 0.1% lower but stayed on track for a. weekly gain.

World stocks appeared on course to wrap up. the year with a 2nd successive yearly gain of more than 17%,. unfazed by escalating geopolitical stress and financial. headwinds.

European markets were closed for Boxing Day.

MSCI's gauge of stocks around the world. fell 0.29 points, or 0.03%, to 856.30.

Emerging market stocks fell 1.47 points, or 0.14%,. to 1,084.39. MSCI's broadest index of Asia-Pacific shares. outside Japan closed 0.15% lower at 574.40,. while Japan's Nikkei increased 437.63 points, or 1.12%, to. 39,568.06.

The 10-year U.S. Treasury yield resumed its uphill climb.

We're most likely on a method to 4.75% to 5.0% on the 10-year. note and the factor for that is that the bond market has plenty of. uncertainties, while the stock market has lots of interest,. Cardillo said. The bond market is predicting a hawkish Fed. entering into probably the first half of the year.

The benchmark U.S. 10-year note yield increased. 3.2 basis indicate 4.619%, from 4.587% late on Tuesday.

The 30-year bond yield increased 2.5 basis indicate. 4.7863% from 4.76% late on Tuesday.

The 2-year note yield, which generally relocates. action with rate of interest expectations, rose 2.3 basis indicate. 4.353%, from 4.33% late on Tuesday.

The dollar edged higher versus a basket of world currencies. on expectations that the greenback stands to take advantage of the. policies of the incoming Trump administration.

The dollar index, which determines the greenback. against a basket of currencies consisting of the yen and the euro,. rose 0.09% to 108.20, with the euro up 0.04% at $1.0409.

Versus the Japanese yen, the dollar strengthened. 0.4% to 158.03.

Oil was basically unchanged, quiting previously strength. due to China stimulus hopes and a market report which revealed. a decrease in U.S. inventories.

U.S. crude rose 0.01% to $70.11 a barrel and Brent. rose to $73.61 per barrel, up 0.04% on the day.

Gold bore down safe-haven demand as financiers awaited. even more signals on the U.S. economy's health.

Area gold increased 0.76% to $2,633.19 an ounce. U.S. gold. futures increased 0.3% to $2,627.90 an ounce.

(source: Reuters)