U.S. stocks experienced a decline on Monday as Wall Street began the final three days of trading in a volatile 2025, a year that is projected to conclude with notable gains.
The Nasdaq Composite, heavily weighted towards technology, saw the most significant drop, falling 0.7%. This decline was largely driven by major players such as Nvidia and Tesla, whose shares both dropped over 2%. The S&P 500 and the Dow Jones Industrial Average followed suit, each dipping approximately 0.4%.
In the world of precious metals, recent volatility emerged following an impressive rally to all-time highs. Silver prices decreased sharply, dropping as much as 7% after previously soaring past $80, while gold futures also declined by more than 3%.
Despite the downturn, the stock market has shown resilience throughout the holiday season, with both the S&P 500 and the Dow reaching record highs last Wednesday, marking the onset of the “Santa Claus rally” which encompasses the last five trading days of December and the first two of January. As the year draws to a close, all three major indexes appear poised to finish 2025 with significant gains: the S&P 500 has increased by over 17%, the Dow has risen by more than 14%, and the Nasdaq has achieved the most growth at over 22%, despite having briefly slipped into a bear market earlier this year following the implementation of substantial tariffs under President Trump’s administration.
In the midst of a relatively quiet week for economic data, a positive indicator emerged on Monday, revealing that pending home sales surged in November, marking the largest jump since early 2023. This uptick is seen as a sign of increasing momentum among homebuyers. Looking ahead, the highlight of the week is expected to be the release of the minutes from the Federal Reserve’s recent meeting, which should provide investors with valuable insights regarding the central bank’s potential actions in January. Currently, predictions indicate that around 80% of traders anticipate the Fed will maintain the current interest rates next month, although there is a divide over future plans for March.
The market’s potential for growth, coupled with stronger housing activity, suggests a hopeful outlook as investors navigate the final days of trading this year.