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On Thursday, the index fell in its first post-Christmas trading day.
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The decline came after consecutive gains earlier this week as traders hoped for a Santa Claus rebound.
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Initial jobless claims were lower than expected, while continuing claims surged to a three-year high.
Stock indexes fell on Thursday in the first post-Christmas trading day, giving back some of their gains from the so-called Santa Claus rally earlier in the week.
The Dow Jones Industrial Average fell about 130 points and opened down 0.3%. The S&P 500 and Nasdaq also fell, down 0.3% and 0.2% respectively.
The market started on a downbeat note after a string of gains earlier this week before closing in on Christmas Eve. Markets remain closed on Christmas Day.
Traders are hoping for a so-called Santa Claus rally, which started on Tuesday and lasts from the last five trading days of the year to the first two trading days of January.
Historically, indexes have performed well during this time, and if that proves to be the case this year, the market could be in for another strong year of gains, analysts said.
“History shows, but does not guarantee, that if markets start off well, there will be very few dips and losses throughout the year,” said Sam Stovall, chief investment strategist at CFRA Research.
Meanwhile, initial jobless claims came in below expectations last week at 219,000, compared with the consensus estimate of 225,000. However, continuing claims surged to 1.91 million, the highest level in more than three years.
Here’s where the U.S. indexes were headed shortly after the market opened at 9:30 a.m. Thursday:
Here’s what else is going on:
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