As the final week of 2025 began, Wall Street’s main indexes slipped from recent record highs, with technology and crypto-linked stocks leading the retreat. On Monday, December 29, the S&P 500 fell 0.35%, closing at 6,905.74, and the Nasdaq Composite shed 0.50% to finish at 23,474.35. The Dow Jones Industrial Average dropped 249.04 points, or 0.51%, ending at 48,461.93, according to Reuters. Despite these declines, all three indexes remain on track for robust double-digit yearly gains, capping a remarkable year for U.S. equities.
The pullback followed a week in which the S&P 500 flirted with the 7,000-point mark, reaching an intraday high of 6,945.77 on Friday, December 26, before ending just below breakeven. The benchmark index is up more than 17% in 2025, while the Dow has gained about 14% and the Nasdaq has surged over 21% year to date, as reported by CNBC. The blue-chip Dow had notched a record closing high last week, underscoring the strength of the current bull market that began in October 2022.
Monday’s losses were largely attributed to a retreat in heavyweight technology names and AI-linked stocks, which had powered much of the year’s rally. Nvidia, a bellwether for artificial intelligence and chipmaking, dropped more than 1%, giving back some of its more than 5% gain from the previous week. Other tech giants like Palantir Technologies, Meta Platforms, and Oracle also posted declines, according to CNBC. "Given this week's light economic calendar, internal momentum could be the main market storyline this week," said Chris Larkin, head of trading and investing at E-Trade from Morgan Stanley. "If stocks are going to close out another year of double-digit gains on a high note, they'll likely need tech to do much of the heavy lifting."
Crypto-exposed stocks echoed the broader tech slide. IREN Limited, which positions itself as both a bitcoin miner and an AI cloud and data-center operator with sites in Texas and British Columbia, Canada, saw its shares fall about 2.3% in after-hours trading, last quoted at $39.41. The stock had traded between $38.55 and $42.25 throughout the session, with volume near 21.9 million shares, according to IREN’s investor news feed and Reuters. Marathon Digital eased 1.1%, Riot Platforms fell 1.8%, CleanSpark dropped 1.8%, and Coinbase lost 1.3% in late trading, mirroring the downward movement of bitcoin itself. The world’s largest cryptocurrency edged lower, down about 0.6% to $87,147 after earlier topping $90,247 and dipping as low as $86,780.
For traders, the focus now shifts to whether bitcoin can steady after Monday’s pullback and whether crypto proxies like IREN will stabilize as the market heads into the New Year holiday. Thin year-end liquidity can magnify price swings, making high-beta stocks like IREN particularly sensitive to shifts in risk appetite. As Reuters noted, miners are among the market’s more volatile trades because their revenue is closely tied to bitcoin prices; they run specialized computers to validate transactions on the Bitcoin network and earn bitcoin as a reward. Monday’s low near $38.55 now serves as a near-term reference point for IREN, with attention on whether it can regain the $40 level in regular trading on Tuesday.
The pressure on technology and crypto-linked stocks came amid a broader pause in the so-called "Santa Claus rally"—a seasonal phenomenon where the S&P 500 typically posts gains in the last five trading days of the year and the first two of the new year, according to the Stock Trader's Almanac. Since 1950, the S&P 500 has averaged a gain of more than 1% during this period, and many investors had hoped for a strong finish after a banner year on Wall Street.
The mood was further dampened by a sharp reversal in precious metals. Silver pulled back more than 6% after reaching $80 per ounce for the first time ever overnight, capping a staggering 150% run-up in 2025. The iShares Silver Trust (SLV) lost around 7%. Gold, too, fell after back-to-back record highs last week. As a result, precious-metal miners slid, dragging the broader materials sector lower. On the other hand, energy stocks gained almost 1%, tracking a 2% rise in oil prices, providing a rare bright spot in an otherwise muted session, as reported by Reuters.
Despite Monday’s softness, the broader context remains one of resilience and optimism. The bull market, which began in October 2022, has weathered concerns over high valuations and bouts of volatility. With traders still optimistic about artificial intelligence, potential interest-rate cuts, and a resilient economy, all three main indexes are poised for their third consecutive yearly gain. Most strategists, including Peter Oppenheimer, chief global equities strategist at Goldman Sachs, expect further gains in 2026. As Oppenheimer noted in a recent research note, "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."
Market breadth on Monday reflected the cautious tone. On the New York Stock Exchange, declining issues outnumbered advancers by a 1.63-to-1 ratio, with 154 new highs and 83 new lows. On the Nasdaq, 1,386 stocks rose while 3,305 fell, for a decliners-to-advancers ratio of 2.38-to-1. The S&P 500 posted 10 new 52-week highs and 2 new lows, while the Nasdaq Composite recorded 37 new highs and 249 new lows. Trading volume on U.S. exchanges was 13.08 billion shares, below the 16.2 billion average over the last 20 trading days, reflecting the typical year-end slowdown in activity, as detailed by Reuters.
Looking ahead, investors are awaiting the release of the Federal Reserve’s December meeting minutes, scheduled for Tuesday, December 31, at 2 p.m. ET. This will offer the last major insight into the central bank’s mindset heading into 2026, as the economic data calendar remains otherwise light. Weekly jobless claims will also be on the radar, but for now, internal market momentum and sector rotations are likely to dominate the narrative.
For many, the question is whether the market’s recent pause is just a breather before another leg higher or the start of a more significant correction. Hank Smith, director and head of investment strategy at Haverford Trust, remains optimistic: "This is not the beginning of the end of the tech dominance; it'll turn out to be a buying opportunity." Smith argues that 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."
With the curtain about to fall on 2025, all eyes are on whether the market can recapture its upward momentum in the final days of the year—and whether the themes that dominated this year, from artificial intelligence to crypto and commodities, will continue to drive headlines in 2026.
