01:11 PM EST, 01/02/2025 (MT Newswires) -- US equity indexes fell, giving up earlier gains, after government bond yields turned the corner and the dollar appreciated strongly in midday trading on Thursday.

The S&P 500 declined 0.6% to 5,849.4, with the Nasdaq Composite down 0.7% to 19,175.4 and the Dow Jones Industrial Average 0.5% lower at 42,319.4. All three indexes were higher earlier in the session. Consumer discretionary and real estate led the steepest decliners while energy and utilities were the sole gainers.

US Treasury yields advanced, with the 10-year up 2.2 basis points to 4.6% and the two-year rate 1.6 basis points higher at 4.27%. The yields on both maturities fell more than 2 basis points each earlier in the session. Most yields traded lower earlier in the session.

The US Dollar index jumped 0.8% to 109.34 intraday after touching its 52-week high of 109.53 earlier in the session.

Gold futures climbed 1.1% to $2,668.6 an ounce, and their silver counterpart jumped 2.3% to $29.91 per ounce.

In economic news, US initial jobless claims fell to 211,000 in the week ended Dec. 28 from an upwardly revised 220,000 in the previous week, in contrast with expectations for an increase to 221,000 in a survey compiled by Bloomberg. The four-week moving average declined by 3,500 to 223,250, breaking a string of four straight increases.

The S&P Global US manufacturing index for December was revised upward to 49.4 from the flash reading of 48.3, compared with expectations for no revision in a Bloomberg poll of analysts. The December index still stands below the 49.7 reported in November, indicating a modest contraction in the sector.

Mortgage applications sank in the two weeks ended Dec. 27 as rates across all loan types increased, the Mortgage Bankers Association said Thursday. The market composite index, which measures loan application volume, declined nearly 22% on a seasonally adjusted basis from the Dec. 13 level. Without adjustments, the index plunged 55% over the two weeks.

In company news, Tesla's (TSLA) Q4 deliveries of about 495,600 vehicles missed Street estimates and Street whisper numbers, Wedbush said in a note. Shares of the electric vehicle manufacturer dropped 6.7%, the steepest decliner on the S&P 500 and the Nasdaq.

Constellation Energy ( CEG ) said it was awarded a 10-year, $840 million contract to supply power to more than 13 federal government agencies. Shares jumped 6.2% intraday, among the top performers on the two indexes.

West Texas Intermediate crude oil futures jumped 2.2% to $73.32 a barrel.