U.S. stocks edged lower on Monday as Wall Street opened the final three trading days of 2025, with profit-taking in megacap tech weighing on major indexes after a volatile but strong year.
The Nasdaq Composite led losses, falling roughly 0.7%, as shares of Nvidia and Tesla both slid more than 1.5%. The S&P 500 and Dow Jones Industrial Average each dipped about 0.5% as broader market momentum cooled following last week’s holiday rally.
Tech Pullback Sets the Tone
Big tech stocks drove much of the weakness to start the week, following a powerful run throughout 2025.
- Nvidia shares pulled back after a year dominated by AI-driven gains
- Tesla retreated as investors locked in profits ahead of year-end
- Broader tech sentiment softened after weeks of leadership
Despite the early-week dip, all three major indexes remain firmly positive for the year:
- S&P 500: up more than 17% in 2025
- Dow Jones: up over 14%
- Nasdaq Composite: up more than 22%, even after briefly entering a bear market in April
Markets had closed last week near all-time highs, with the S&P 500 and Dow setting fresh records at the start of the traditional “Santa Claus rally” window.
Precious Metals See Violent Reversal
Volatility also surged in commodities after a historic rally.
- Silver plunged as much as 7% after briefly trading above $80
- Gold futures slid more than 3% following recent record highs
The sharp pullback highlights how crowded the precious metals trade had become after a parabolic move driven by inflation hedging, geopolitical risk, and safe-haven demand.
Economic Data Light, Fed Minutes in Focus
With a relatively quiet economic calendar this week, investors received one notable data point on Monday as pending home sales in November jumped the most since early 2023, signaling improving housing momentum.
The key macro catalyst arrives Tuesday with the release of Federal Reserve meeting minutes, which investors will scrutinize for clues on:
- The Fed’s January policy outlook
- Internal divisions among policymakers
- Timing of potential rate cuts in 2026
Markets are currently pricing roughly an 80% chance that the Fed holds rates steady in January, though expectations are more mixed for March.
Amazon Draws Bullish 2026 Calls
While much of big tech cooled, Amazon continues to draw optimism from Wall Street despite lagging peers in 2025.
Analysts point to several potential catalysts heading into 2026:
- Reaccelerating growth at AWS
- Rising demand for Trainium AI chips
- Continued expansion in advertising revenue
- The rollout of Alexa+
Some analysts see nearly 50% upside potential if these drivers materialize over the next 12–24 months.
Nvidia Completes $5B Intel Share Purchase
Separately, Intel disclosed that it completed the sale of approximately $5 billion worth of shares to Nvidia, formalizing a strategic partnership announced earlier this year.
Key takeaways from the deal:
- Nvidia will collaborate with Intel on CPUs for data centers and PCs
- Intel Foundry Services is not part of the partnership
- Intel’s future hinges on its next-generation 18AP and 14A processes
Intel shares jumped on the news, while analysts continue to debate whether the company can secure major external manufacturing customers.
WSA Take
The final stretch of 2025 is starting with consolidation, not panic. After a year dominated by AI, megacap tech, and sharp rotations, markets appear to be catching their breath. With valuations elevated and leadership narrowing, investors are shifting from momentum to selectivity. The Fed’s next move — or lack of one — could set the tone for how risk assets enter 2026.
Read our recent coverage on Washington and the $30 Trillion U.S. Bond Market.
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