By Stephen Culp NEW YORK (Reuters) -Wall Street stocks headed lower on Thursday and U.S. benchmark Treasury yields scaled the highest level since April in light, post-Christmas trading. The modest but broad-based sell-off pulled all three major U.

The article examines the performance of U.S. stock markets, focusing on the Santa Claus rally phenomenon. It discusses the impact of 10-year Treasury yields, megacap stock valuations, and a notable lawsuit against the Federal Reserve over its annual stress tests.

Some of the biggest winners were mega-cap tech stocks, with Tesla up by 6% while Broadcom, Netflix, and Amazon each gained about 2%.

Stocks have seen a stellar 2024, but the S&P 500 is in danger of a rare December loss. It’s all riding on the so-called Santa Claus rally.

U.S. equity futures moved lower in early Thursday trading, while Treasury bond yields remained elevated in the wake of the Federal Reserve's cautious rate stance, as investors hit pause on the early Santa Claus rally.

"Stocks tend to do well in the absence of news and this is why strength around holidays tends to occur," Ryan Detrick said.