Dow Jones & the U.S. economy

Initial claims for unemployment benefits fell by 22,000 to a seasonally adjusted 432,000 in the week ended Dec. 26, the lowest level since July 19, 2008. Economists surveyed by Dow Jones Newswires had forecast claims would rise by 3,000.
For the most part of 2009, ultra-low interest rates in the U.S. prompted investors to snap up the euro and other growth-sensitive assets every time there were signs that the global economy was emerging from the worst recession in decades.
They would borrow cheap dollars, thus using the greenback to fund the purchase of other riskier assets.

But recently this trading pattern seems to have changed: Stronger U.S. economic data support the dollar as investors become more confident the Fed will begin removing monetary stimulus, and eventually lifting interest rates, sooner rather than later.

As many investors were on the sidelines Thursday due to the holiday break, extreme light trading exaggerated price moves, traders said.
Japanese markets were closed and financial markets in many countries shut down early for New Year's Eve. Virtually all markets in the world will be closed Jan. 1.