Global stock markets had a rough start to 2025, with US equities stumbling on the first trading day of the year. The Dow Jones Industrial Average fell 151.95 points or 0.36% to close at 42,392.27, while the S&P 500 dropped 13.08 points or 0.22% to 5,868.55. The Nasdaq Composite slipped 30.00 points or 0.16% to 19,280.79.

The consumer discretionary sector led Wall Street's losses, falling 1.27%. Tesla was a significant drag, with its shares plummeting 6.08% following its first annual decline in vehicle deliveries.

The US Labour Department reported an eight-month low in unemployment claims, with 211,000 applications filed last week, below the 222,000 forecast. Keith Buchanan, Senior Portfolio Manager at Globalt Investments, commented, "The labour market's resilience has been key to sustaining consumer activity and the broader economy during the inflation fight."

The US dollar index rose 0.67% to 109.27, its highest since November 2022, driven by expectations of robust economic growth in the US. The euro dropped to $1.0263, while the dollar strengthened to 157.60 yen. Sterling declined 1.12% to $1.2377.

Oil prices saw gains amid optimism over China's economic recovery. US crude settled at US$73.13 per barrel, up 1.97%, while Brent crude rose 1.73% to US$75.93 per barrel.

While US stocks struggled, European equities showed strength. The STOXX 600 index closed up 0.6%, supported by energy sector gains. MSCI's gauge of global stocks fell 0.20% to 839.70.

The yield on 10-year Treasury notes eased slightly to 4.563% but remained above the critical 4.5% level, posing a challenge for equities.

Reuters