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| U.S. Stocks Close Lower as Tech Selloff Dampens Year-End Rally |
U.S. stocks ended Monday’s session in negative territory as a pullback in technology shares offset broader market optimism, casting a shadow over the final week of 2025. The decline highlights ongoing volatility despite strong U.S. stocks year-end performance expectations.
The Dow Jones Industrial Average fell 0.51%, while the S&P 500 dropped 0.35% and the Nasdaq Composite slid 0.50%. Heavyweight tech names led the retreat, with Nvidia down 1.2% and Palantir falling 2.4%. Tesla also declined 3.3% after last week’s record highs.
Investors remain hopeful for a “Santa Claus rally,” a seasonal uptick typically seen in late December and early January. Despite Monday’s losses, all three major indexes are on track for double-digit annual gains, marking a third straight year of growth.
Precious metal miners weakened as gold and silver prices pulled back from recent highs. Meanwhile, energy stocks rose nearly 1% alongside a surge in oil prices, offering limited support to the broader market.
DigitalBridge jumped 9.6% after SoftBank agreed to acquire the digital infrastructure firm for $4 billion, standing out as a rare bright spot amid the tech-led selloff.
Market volumes were below average, reflecting typical year-end light trading. Decliners outnumbered advancers on both the NYSE and Nasdaq, signaling cautious sentiment as 2025 draws to a close.
Even with the dip, analysts remain confident in the resilience of U.S. equities heading into 2026, citing AI momentum, anticipated Fed rate cuts, and a stable economy. The positive outlook reinforces the strong U.S. stocks year-end performance narrative despite Monday's setback.
