US stocks dip in pause from 'Santa Claus' rally

NEW YORK (AFP) - Wall Street stocks declined on Thursday (Dec 30), giving back a fraction of their recent gains in the sleepy holiday period as investors weigh the latest moves to contain Covid-19.

Both the Dow and S&P 500 retreated from records during the "Santa Claus rally" - the post-Christmas period when stocks generally drift higher amid light trading volumes.

With one trading day remaining in 2021, major indices have had a banner year, with the broad-based S&P 500 up more than 27 per cent.

The Dow Jones Industrial Average on Thursday dropped 0.2 per cent to finish at 36,398.08.

The S&P 500 shed 0.3 per cent to 4,778.73, while the tech-rich Nasdaq Composite Index lost 0.2 per cent to close at 15,741.56.

Data showed US jobless claims fell back under 200,000 last week in one of the week's only prominent economic reports.

Worries about spiking Covid-19 cases due to the Omicron variant have been mitigated by research suggesting the latest strain is less deadly than earlier versions.

But the surge in infections is having an impact on the travel industry.

Carnival lost 1.2 per cent and Norwegian Cruise Line 2.5 per cent after the US Centres for Disease Control and Prevention urged Americans to avoid travel on ships, even if they are vaccinated.

Biogen fell 7.1 per cent after Samsung denied a report it was in negotiations to acquire the biotech company. Shares of Biogen had soared 9.5 per cent after Korea Economic Daily reported the talks.

Teva Pharmaceutical Industries fell 6.1 per cent after a New York state jury found the drug company liable following a trial on the drugmaker's role in the opioid addiction crisis. Teva plans to appeal.