(Bloomberg) — An early rally in equities collapsed and major US benchmarks were poised to extend a selloff that shaved more than a trillion dollars from share prices over the last four sessions. Tesla Inc.’s post-Christmas slump swelled to nearly 20% after its annual vehicle sales dropped.
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Treasury yields steadied while the rate on the benchmark 10-year was nearly 20 basis points above the level prior to Jerome Powell’s hawkish turn at a Dec. 18 Federal Reserve meeting. Big moves have proliferated across asset classes after Powell’s board expressed waning enthusiasm for interest-rate cuts. The Cboe Volatility Index climbed for the fourth time in five days.
Tesla sagged after the electronic vehicle-marker’s fourth-quarter deliveries missed estimates and annual sales dropped for the first time in over a decade. The stock was on track for its worst five-day drop in more than two years.
For corporate earnings, 2025 will be a “show-me year,” according to Lisa Shalett at Morgan Stanley Wealth Management. As for the grim end to 2024, it’s “too soon to call it a bad omen,” she told Bloomberg Television.
Treasuries erased an early advance after a reading of weekly jobless claims fell to an eight-month low. A Bloomberg gauge of the dollar’s strength traded at a more than two-year peak.
Goldman Sachs economists led by Jan Hatzius noted that “seasonal adjustment challenges can make jobless claims readings particularly volatile…
