Wall Street kicked off the final week of 2025 on a softer note, as major indexes retreated from record highs driven by profit-taking in the high-flying technology and AI sectors.
After the S&P 500 moved within 1% of the historic 7,000-point milestone last week, investors shifted to a defensive stance on Monday. While the “Santa Claus rally” remains a possibility for the remaining sessions of the year, heavyweight tech shares led the broad market lower in thin holiday trading.
Market Close Snapshot: December 29, 2025
| Index | Closing Price | Change | % Change |
| S&P 500 | 6,905.74 | -24.20 | -0.35% |
| Nasdaq Composite | 23,474.35 | -118.75 | -0.50% |
| Dow Jones Industrial | 48,461.93 | -249.04 | -0.51% |
| Russell 2000 | 2,519.80 | -14.55 | -0.60% |
Big Tech and AI Leaders Stumble
The technology sector, the primary engine of 2025’s market gains, saw a notable pullback as traders locked in year-end profits.
- Nvidia (NVDA): Slipped 1.2%, despite recent optimism surrounding its $20 billion licensing deal with Groq.
- Tesla (TSLA): Paced the Nasdaq’s laggards, falling 3.3% after reaching record territory just days ago.
- AI Sentiment: Companies like Palantir (PLTR) and Oracle (ORCL) fell 2.4% and 1.3% respectively, as analysts at Investopedia noted concerns regarding the long-term returns on massive AI capital expenditures.
Precious Metals Plunge as Margin Requirements Rise
In one of the most dramatic shifts of the session, silver and gold saw a sharp correction. Silver recorded its biggest one-day decline in nearly five years, dropping nearly 9% to roughly $73 an ounce after touching a record high above $84 earlier in the day. Gold similarly dipped over 4% to close near $4,350 per ounce.
The sell-off was triggered by the CME Group’s decision to raise margin requirements, forcing some traders to liquidate positions. Consequently, gold miners like Newmont (NEM) were among the worst performers in the S&P 500, falling over 5.6%.
Geopolitics Boost Energy Sector
While most sectors struggled, energy stocks gained nearly 1%. This was bolstered by a 2% rise in West Texas Intermediate (WTI) crude oil, which settled at $57.90 per barrel.
Tensions remain high following reports of U.S. strikes on Venezuelan docks and escalating military exercises by China near Taiwan. According to Charles Schwab’s market update, these “geopolitical rumblings” have increased market volatility even as the year draws to a close.
2026 Outlook: Optimism Remains Intact
Despite the Monday dip, the S&P 500 remains up approximately 17.4% for the year, while the Nasdaq has surged over 21%.
Experts suggest this is a temporary pause rather than a trend reversal. As reported by Reuters, many strategists believe the strong financial health of “Big Tech” (excluding Tesla) and the potential for further Federal Reserve easing provide a solid foundation for continued growth in 2026.
Key Takeaways for Investors
- Watch the Minutes: The market is awaiting the Federal Reserve’s December meeting minutes for hints on 2026 interest rate policy.
- Housing Resilience: November Pending Home Sales rose 3.3%, marking the fourth consecutive monthly rise and a three-year high.
- Portfolio Balancing: Institutional “window dressing” is expected to continue through Wednesday’s close.