UPDATE: US stocks are experiencing a significant downturn as the year draws to a close, with the S&P 500 Index falling 0.3% in midday trading. This decline comes just less than 1% from its record close on December 25, 2025. Nike emerged as a rare bright spot, surging over 4% after news that its CEO purchased shares.
In a stark contrast, precious metals are facing steep losses, with silver plunging nearly 9% and platinum down more than 6%. Gold slipped as oil prices remained stable. Meanwhile, Bitcoin is trading around $87,500. The Nasdaq 100 Index also dropped 0.3%, while Bloomberg’s Magnificent Seven Index showed little change as markets paused for the holiday season.
All sectors within the S&P 500 are in the red, led by significant declines in real estate, energy, and materials, with none falling more than 0.8%. The benchmark index has still managed an impressive 17% gain for the year, following previous surges of more than 20% in the last two years. This year’s rally faced challenges, including a sharp dip in April after President Donald Trump introduced a stringent tariff regime.
Thin trading volumes and minimal price fluctuations have characterized the final trading days of 2025, defying expectations for a “Santa Claus rally” that typically sees equities rise into the new year. “Santa seems to be snoozing this go around,” said Phil Segner, a portfolio manager at Leuthold Group. “Losses seem light, though. It looks like modest selling on another quiet day.”
Market highlights indicate a broader downward trend:
– ASX 200 futures are down 31 points or 0.4% to 8676.
– As of 12:30 PM EST, the Dow is down 0.3%, S&P down 0.3%, and Nasdaq down 0.2%.
– The VIX index rose 0.35 to 14.68.
– Gold dipped 0.4% to $4,322.91 an ounce.
– Brent oil is down 0.1% to $61.28 a barrel.
A surprising decline in initial jobless claims during the Christmas week may reflect an imperfect seasonal-adjustment process. Bloomberg economist Eliza Winger suggests that weak hiring is likely to keep the Federal Reserve open to interest-rate cuts in 2026.
In corporate news, Nvidia climbed 0.9% after reports indicated it approached TSMC to ramp up production of its H200 artificial intelligence chips. Tesla fluctuated between small gains and losses after investor Michael Burry stated he is not shorting the stock despite calling it “ridiculously overvalued” earlier this month.
In biotechnology, Vanda Pharmaceuticals soared 26% following FDA approval of its motion sickness treatment. Axsome Therapeutics jumped 20% after receiving priority review for its Alzheimer’s drug. Conversely, Corcept Therapeutics plummeted 50% after regulators rejected its treatment for a specific type of high blood pressure.
Miners are also slipping after CME Group raised margins on precious-metal futures for the second time in a week due to volatile trading conditions. Newmont shares dropped 1% as a result of these changes, which will take effect after market close on Wednesday.
In a notable development, Berkshire Hathaway remained stable as Wednesday marks the last day for legendary investor Warren Buffett at the firm. Buffett indicated in November that he is “going quiet,” signaling the end of an era.
As trading continues, investors are advised to monitor these developments closely, as the markets remain poised for potential shifts heading into the new year.
