Stocks Dip as 2025 Wraps Up: Tech Weakens, Oil Gains/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stock markets opened the week with losses as 2025 winds down. Tech giants like Nvidia and Broadcom dragged major indexes lower, despite a strong annual performance overall. Meanwhile, oil prices climbed, gold pulled back, and bond yields dipped slightly.
Wall Street 2025 Year-End Market Quick Looks
- U.S. stocks decline to begin final trading week of 2025
- S&P 500 dips 0.4%, still up 17% YTD
- Dow Jones down 225 points, Nasdaq falls 0.6%
- Tech stocks like Nvidia and Broadcom lead losses
- AI optimism wanes slightly as valuations face scrutiny
- Energy sector rises with crude oil prices surging
- Gold prices slump but remain up 64% for the year
- Treasury yields fall amid rate-cut-driven bond rally
- Fed cut rates three times in 2025 despite inflation concerns
- European and Asian markets post mixed performances
Deep Look
Stocks Dip as 2025 Wraps Up: Tech Weakens, Oil Gains
Wall Street began the final week of 2025 on a muted note, as major indexes edged lower amid fading momentum in the technology sector. The S&P 500 fell 0.4% in Monday morning trading, trimming some of the year’s strong gains but still keeping the benchmark index up more than 17% for the year. If the trend holds, it will mark the eighth consecutive month of gains for the index — a sign of overall market resilience despite recent volatility.
The Dow Jones Industrial Average dropped 225 points, or 0.5%, while the tech-heavy Nasdaq composite declined by 0.6%, reflecting broader market caution heading into the new year.
Large-cap technology stocks, which have dominated the market for much of 2025 due to enthusiasm over artificial intelligence, were among the biggest drag on Monday’s performance. Nvidia lost 1.7%, while Broadcom declined by 1%. After powering much of the market’s rally this year, these AI-related companies are now encountering investor skepticism as questions arise about whether long-term returns will justify their lofty valuations.
Though the AI boom fueled multiple record-setting sessions throughout the year, December has seen a pullback in tech stocks. Many high-profile names recorded only modest gains this month after a choppy November.
Meanwhile, the energy sector saw modest gains as oil prices climbed. U.S. benchmark crude rose 2.6% to $58.18 per barrel, while Brent crude, the international benchmark, gained 2.3% to settle at $61.61 a barrel. Shares of energy giant Exxon Mobil jumped 1.6%, benefiting from the price rebound.
In contrast, gold prices took a significant step back. After a robust rally, the price of gold dropped 4.6% on Monday. Despite the daily decline, the precious metal has had an exceptional 2025, up around 64% year-to-date, driven by persistent economic uncertainties and inflation hedging strategies.
As markets enter a holiday-shortened week — with New Year’s Day closing U.S. exchanges on Thursday — investors are taking a cautious approach amid a complex economic backdrop. The bond market reflected this tone, with the 10-year U.S. Treasury yield slipping to 4.12%, down from 4.13% on Friday.
Treasury yields have dropped significantly throughout the year, initially on expectations that the Federal Reserve would begin cutting interest rates. The central bank delivered on that expectation, slashing its benchmark rate three times in the second half of 2025. However, these rate cuts come at a time when inflation remains stubbornly above the Fed’s 2% target, while signs of a cooling job market have emerged.
The Federal Reserve’s challenge has been to stimulate economic activity without allowing inflation to reignite. Lower interest rates typically encourage borrowing and investment, but the risk remains that consumer prices could rise again if economic activity rebounds too quickly.
Global markets mirrored the cautious sentiment. European and Asian indexes were mixed. In Taiwan, shares climbed 0.9% even after China’s military announced drills near the island — a geopolitical flashpoint that has previously rattled investors. The Hang Seng Index in Hong Kong reversed early gains, closing 0.7% lower.
With just three trading days left in 2025, investors are keeping a close eye on economic data, corporate guidance, and geopolitical developments that could shape early 2026 trading. Despite Monday’s decline, the year has been overwhelmingly positive for equities, particularly in the U.S., where tech and energy stocks have helped drive market performance to one of its best years since the pandemic recovery.
As Wall Street winds down for the year, market participants remain watchful for any final surprises, while positioning themselves for what could be another turbulent — yet opportunity-filled — year ahead.
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