Wall Street Slips on First Trading Day of the Year
The three major U.S. stock indices closed the first session of 2025 with losses, reversing earlier gains but finishing above intraday lows.
The S&P 500 fell 0.22% to 5,868.55 points, while the Nasdaq Composite declined 0.16% to 19,280.79 points. The Dow Jones Industrial Average dropped 0.36% to close at 42,392.27 points.
Tesla Led the Losses
Tesla shares led the declines, plummeting 6.08% and hitting a three-week low after the automaker announced its first annual drop in deliveries. The company fell short of CEO Elon Musk’s pledge of modest growth for 2024.
Tesla reported delivering 495,570 electric vehicles in Q4 2024, below analysts’ expectations of 512,277 units. For the full year, Tesla’s total deliveries reached 1.789 million units, marking a 1.1% decrease compared to 2023 and falling short of the 1.806 million projected by analysts.
Market Outlook
Investor sentiment was further dampened by uncertainties surrounding policies introduced by former President Trump. Concerns about the long-term impact of these policies, including elevated inflation, have made investors more cautious in recent weeks. This has led to profit-taking after an initial rally in response to Trump’s electoral victory in early November.
Additionally, fears of persistently high inflation have tempered expectations of aggressive interest rate cuts by the Federal Reserve. The central bank recently signaled a slower pace of rate reductions for 2025, citing concerns about stubborn inflation and a robust labor market.
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