Dow Jones Slumps on Unexpected Jobless Claims Surge; Apple, Tesla Extend Bearish Trends

The Dow Jones Industrial Average dropped 320.43 points, or 0.92%, to close at 34,561.87, marking its first negative session in four days. The move followed a sharper-than-expected increase in initial jobless claims, which rose to 235,000 for the week ended January 4—up from a revised 221,000 the prior week and exceeding expectations of 228,000. The data sparked renewed caution among investors, raising concerns about a potential slowdown in the labor market. Apple Inc. (AAPL) fell 2.3% after reporting weak iPhone sales in China during the fourth quarter, with unit shipments down 11% year-over-year. The company also delayed the rollout of its next-generation smartphone due to supply chain bottlenecks. Tesla Inc. (TSLA) dropped 3.8%, pressured by lower-than-expected deliveries in the final quarter and ongoing concerns over vehicle pricing strategies in key markets like Europe and North America. The S&P 500 lost 0.7%, while the Nasdaq Composite shed 1.1%, led by losses in semiconductor and electric vehicle stocks. Nvidia Corp. (NVDA) slipped 1.9% despite strong earnings earlier in the week, as investors reassessed growth expectations amid rising AI hardware competition. Market volatility increased, with the CBOE Volatility Index (VIX) climbing 12.5% to 17.8, signaling elevated risk appetite. Treasury yields rose slightly, with the 10-year note yield ending at 4.31%, reflecting shifting expectations around Federal Reserve policy in the coming months.