U.S. stock indexes fell on Thursday, extending the four-day losing streak that marked the end of a stellar 2024 for Wall Street. The S&P 500 dropped 0.2%, the Dow Jones Industrial Average fell 0.4%, and the Nasdaq composite lost 0.2%. Tesla’s stock slumped after the company disclosed lower-than-expected vehicle deliveries in the last quarter of 2024. Analysts have been warning that stock prices are inflated and at risk of a pullback.
A measure tracked by Bank of America, which indicates how heavily Wall Street analysts recommend stocks, recently hit its highest level since early 2022. According to strategist Savita Subramanian, this measure has been a reliable contrarian indicator in the past and is close to triggering a sell signal for those cautious of following the herd mentality on Wall Street.
H.B. Fuller, a seller of adhesives and sealants, saw its stock fall 7.5% after reporting a slowdown in sales to various customer categories. On the other hand, companies tied to the energy industry saw gains as crude oil and natural gas prices rose. Constellation Energy was one of the biggest gainers in the S&P 500 after securing contracts worth over $1 billion with the U.S. General Services Administration.
Some Big Tech stocks, like Nvidia, also helped limit the market’s losses. Nvidia’s stock rose 3% after significant surges in previous years. Analysts are optimistic about the future of artificial intelligence technology, despite concerns about overvalued stock prices. The Federal Reserve’s decision to deliver fewer interest rate cuts in 2025 than anticipated has caused a shift in expectations among investors, who have previously benefited from rate cuts driving the stock market to new highs.
In global stock markets, indexes in Hong Kong and Shanghai fell after a survey showed slower expansion in Chinese factory activity. Chinese leader Xi Jinping’s New Year’s address, where he talked about policies supporting economic development, did little to boost investor optimism. Stock indexes were mostly higher in Europe, while Japan’s market remained closed. Overall, the S&P 500 slipped, along with the Dow and the Nasdaq composite, amid concerns about stock valuations and global economic trends.
