The New York stock market ended its record-breaking streak, closing lower on Thursday.
Investors adopted a cautious stance following Federal Reserve Chair Jerome Powell’s hints at a slower pace of interest rate cuts on the previous day. The market is waiting for the November employment data.
Tesla saw a significant jump of 3.2%, while Nvidia edged down by 0.05%. The “Magnificent Seven” tech giants showed mixed results.
Broad-based decline
All three major New York stock market indexes closed in negative territory.
The Dow Jones Industrial Average retreated below the 45,000 mark, shedding 248.33 points (0.55%) to close at 44,765.71.
The decline was caused as the UnitedHealth Group’s stock plummeted 5.2% following the shocking assassination of its CEO in midtown Manhattan.
The tech-heavy S&P 500 and Nasdaq fared slightly better.
Four Magnificent Seven stocks posted gains, limiting the S&P 500 and Nasdaq’s losses to less than 0.2%.
The S&P 500 dipped 11.38 points (0.19%) to 6,075.11, while the Nasdaq slipped 34.86 points (0.18%) to 19,700.26.
Tesla accelerates 3.2%
Tesla’s stock revved up by over 3%.
Tesla closed at $369.49, surging $11.56 (3.23%). This latest gain propelled Tesla’s stock price to a remarkable 52% increase since the election on November 5.
The rise was fueled by anticipation surrounding the company’s autonomous taxi service and Cybertruck, both of which are expected to launch in 2026.
A Tesla engineer revealed that about half of the Cybertruck’s components would overlap with the Model 3, potentially reducing production costs.
Wedbush Securities analyst Dan Ives projects Tesla’s autonomous driving division, including the Cybertruck, could tap into a $1 trillion market.
Amazon also continued its upward trajectory.
Amazon finished at $220.55, climbing $2.39 (1.10%). This marked its fifth consecutive day of gains since November 29, and it has accumulated a more than 7% increase during this period.
After a 3.5% surge on the previous day, Nvidia retreated slightly amid profit-taking, closing down $0.07 (0.05%) at $145.06.
Oil prices slip despite OPEC+ production cut extension
International oil prices declined for the second consecutive day.
The Organisation of the Petroleum Exporting Countries (OPEC+) unexpectedly extended its production cuts instead of increasing output as planned, which caused the oil prices to fall.
The market focused more on the underlying weak demand that prompted the production cut extension rather than potential supply constraints.
The delay in expected production increases underscored concerns about the decrease in demand.
The international oil benchmark of Brent crude settled at $72.09 per barrel, down $0.22 (0.30%) from the previous session.
West Texas Intermediate (WTI), the U.S. oil benchmark, closed at $68.30 per barrel for January delivery, dropping $0.24 (0.35%) from the last trading day.
