Wall Street Weakens as Technology Stocks Pressurize Indexes Ahead of Year-End

Market Overview

The major US stock indexes opened lower on Monday, December 29, 2025, as investors took a breather after last week's gains. The Dow Jones Industrial Average fell 0.15% to 48,636.63, while the S&P 500 dropped 0.38% to 6,903.6 ¹

. The technology-heavy Nasdaq Composite led the decline, falling 0.76% to 23,414.679 ²

Source 2

https://investasi.kontan.co.id/news/wall-street-melemah-saham-teknologi-tekan-indeks-jelang-tahun-baru

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Sector Performance

The technology sector was under significant pressure, with major tech stocks experiencing notable declines. Nvidia shares fell 1.2% while Palantir Technologies dropped 2.4% ²

. This pullback in tech stocks came after the S&P 500 had reached record highs the previous week, driven by optimism about potential interest rate cuts and strong corporate earnings.

Market Context

The S&P 500 remains within 1% of the 7,000 level, a psychological threshold that investors are watching closely. Historically, the index has shown a tendency to rise during the 'Santa Claus rally' - a seasonal phenomenon where the S&P 500 typically records gains in the last five trading days of the year and the first two trading days of January, according to the Stock Trader's Almanac ¹

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