Tech, AI-linked stocks such as Nvidia trigger decline
DigitalBridge rises on SoftBank’s $4 bln acquisition deal
Gold, silver miners fall as precious metal rally stalls
Three main U.S. stock indexes set for double-digit yearly gains
(Updates to close)
By Saeed Azhar, Purvi Agarwal and Shashwat Chauhan
NEW YORK, Dec 29 (Reuters) - Wall Street’s main indexes ended lower on Monday, kicking off the final week of the year on a softer note, as heavyweight technology stocks retreated from last week’s gains that had pushed the S&amp;P 500 to record highs.
The information technology sector (.SPLRCT) weighed on the S&amp;P 500, as most tech and AI-linked stocks declined, such as Nvidia (NVDA.O) and Palantir Technologies (PLTR.O) .
“This is (not) the beginning of the end of the tech dominance, it’ll turn out to be a buying opportunity,” said Hank Smith, director and head of investment strategy at Haverford Trust.
“A big reason for that is the top tech names, excluding Tesla, do not have challenging valuations given their growth rate, the moat around their business and their financial strength, which is unparalleled.”
According to preliminary data, the S&amp;P 500 (.SPX) lost 23.84 points, or 0.34%, to end at 6,906.10 points, while the Nasdaq Composite (.IXIC) lost 118.75 points, or 0.50%, to 23,474.35. The Dow Jones Industrial Average (.DJI) fell 242.43 points, or 0.50%, to 48,468.54.
Tesla (TSLA.O) fell sharply after hitting a record high last week, weighing on the consumer discretionary sector (.SPLRCD) .
Materials (.SPLRCM) slipped, with precious metal miners sliding as silver (XAG=) dropped sharply after topping $80 per ounce for the first time, while gold (XAU=) also fell after back-to-back record highs last week.
Conversely, energy stocks (.SPNY) gained, tracking a 2% rise in oil prices.
Bank stocks (.SPXBK) also retreated after a strong rally this year. Citigroup (C.N) , among major gainers this year due to progress on resolving some regulatory problems, was among major decliners.
Stocks pulled back after the S&amp;P 500 was within 1% of the 7,000-point mark. The blue-chip Dow hit a record closing high last week.
Some investors were hoping for a “Santa Claus rally”, a seasonal phenomenon where the S&amp;P 500 typically posts gains in the last five trading days of the year and the first two in January, according to Stock Trader’s Almanac.
All three indexes were headed for firm monthly gains, with the Dow and S&amp;P 500 on pace for their eighth consecutive month in the green.
The bull market, which began in October 2022, stayed intact despite concerns over high valuations of technology companies and market volatility. With traders still optimistic about AI, interest-rate cuts and a resilient economy, all three main indexes are set for their third consecutive yearly gain.
Most strategists also expected gains in 2026.
With expectations for continued global economic expansion and further easing by the Federal Reserve, it would be unusual to see a significant equity setback or bear market without a recession, said Peter Oppenheimer, chief global equities strategist at Goldman Sachs, in a recent note.
On the macro front, minutes from the Fed’s previous meeting and a weekly reading of jobless claims will be on the radar in an otherwise data-light week.
The S&amp;P 500 has added about 17% so far this year, as the frenzy to capitalize on AI helped the U.S. benchmark overtake Europe’s STOXX 600 (.STOXX) , despite investors diversifying away from U.S. stocks earlier in the year.
DigitalBridge (DBRG.N) surged, with Japan’s SoftBank Group (9984.T) set to acquire the digital infrastructure investor in a deal valued at $4 billion.
World stocks in 2025
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U.S. stocks in 2025
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NVDA

PLTR

U.S. stocks ended lower as tech shares, particularly Nvidia and Palantir, declined, impacting the S&P 500, which lost 0.34%. Despite this, the market remains optimistic with expectations for continued gains in 2026, driven by AI and economic resilience. DigitalBridge surged on SoftBank's $4 billion acquisition deal, while precious metal miners fell as gold and silver prices dropped. All three main indexes are set for yearly gains, maintaining the bull market that began in October 2022.

- Wall Street's main indexes closed lower, as technology stocks like Nvidia and Palantir declined, counteracting recent gains.  
- Despite this pullback, analysts suggest it may represent a buying opportunity due to strong fundamentals in top tech companies.  
- Overall, the S&P 500 has gained approximately 17% in 2025, with expectations for continued growth into 2026 fueled by optimism regarding the economy and artificial intelligence.

US STOCKS-US stocks end down as tech shares drop ahead of New Year