US stocks moved lower on Monday as Wall Street entered the final trading days of 2025, closing out a year marked by sharp swings but overall strong gains.

The pullback was led by technology stocks, with Nvidia and Tesla shares dropping more than 2%, putting pressure on major market indexes.

Nasdaq Falls as Big Tech Stocks Decline

The Nasdaq Composite fell about 0.7%, making it the worst-performing major index of the day. Losses in large-cap technology stocks, especially Nvidia and Tesla, dragged the index lower.

The S&P 500 and the Dow Jones Industrial Average also declined, each slipping roughly 0.4%. Despite the dip, all three indexes remain close to record levels reached during the previous holiday-shortened trading week.

Gold and Silver Prices Reverse After Sharp Rally

Precious metals saw heavy volatility following a strong rally to record highs.

• Silver prices dropped as much as 7% after briefly trading above $80
• Gold futures fell more than 3%

The sharp pullback came after intense buying pressure pushed metals to historic levels, highlighting how quickly momentum can shift in commodity markets.

Stocks Still on Track for Strong 2025 Gains

Even with recent declines, US stocks are heading toward a solid finish for the year.

• S&P 500: up more than 17% in 2025
• Dow Jones: up over 14%
• Nasdaq Composite: up more than 22%, leading all major indexes

The Nasdaq’s gains came despite a turbulent year that included a brief bear market in April, triggered by concerns following President Trump’s rollout of broad new tariffs earlier in the year.

Santa Claus Rally Keeps Markets Near Record Highs

Last week, markets benefited from the seasonal “Santa Claus rally,” which refers to the final five trading days of December and the first two sessions of January.

Both the S&P 500 and Dow Jones hit all-time highs during the shortened Christmas trading week, giving investors confidence heading into year-end.

Housing Data Offers a Bright Spot

Economic data releases remain limited this week, but one positive update came from the housing market.

New figures showed pending home sales jumped sharply in November, marking the largest increase since early 2023. The data suggests buyer activity may be improving after a long period of high mortgage rates and affordability challenges.

Investors Await Federal Reserve Meeting Minutes

The key event for markets this week is expected on Wednesday, when the Federal Reserve releases minutes from its most recent policy meeting.

Investors are closely watching for clues about future interest rate decisions:

• Roughly 80% of market expectations point to the Fed holding rates steady in January
• Outlook for March remains more uncertain, with traders divided on possible outcomes

Disagreements within the central bank that shaped much of 2025 are expected to carry into the new year, keeping rate expectations sensitive to incoming data.

Market Outlook: Volatility Likely to Continue Into 2026

As 2025 comes to a close, markets remain supported by strong annual gains, but volatility has not disappeared. Tech stock valuations, interest rate uncertainty, and global policy risks are likely to stay in focus as investors prepare for 2026.

Short-term pullbacks, like the one seen this week, may continue as traders rebalance portfolios ahead of the new year.

Disclaimer

This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Market data and figures are accurate at the time of writing but are subject to change. Always conduct your own research or consult a licensed financial professional before making investment decisions.