U.S. stocks falter in the last leg of 2025, with major indexes under pressure
U.S. stocks edged lower on Tuesday as Wall Street attempted to stabilize following a tech-driven selloff in the final days of 2025.
The Nasdaq Composite slipped 0.2%, while the S&P 500 eased 0.1%. The Dow Jones Industrial Average also declined 0.2%. Major indexes notched a third consecutive day of losses after megacap names such as Nvidia and Tesla weighed on the market, reflecting a modest rotation away from technology stocks as investors reassessed positions and locked in year-end profits.
In commodities, precious metals rebounded sharply after heavy losses a day earlier. Silver futures surged more than 7%, recovering from their steepest single-day drop in over five years, while gold futures climbed around 1.3%.
Meanwhile, minutes from the Federal Reserve’s December meeting highlighted divisions among policymakers regarding the recent rate cut. Officials emphasized that further rate reductions would depend on continued progress in easing inflation.
Market pricing shows roughly 84% of traders expect the Fed to keep rates unchanged at its next meeting, with expectations for March remaining closely split.
Stocks dipped mainly due to profit-taking and a rotation out of tech, as investors reassessed positions toward year-end after strong gains earlier in 2025.
Megacap tech names like Nvidia and Tesla led losses, signaling a short-term pullback as traders reduced exposure to crowded trades.
Precious metals bounced after heavy selling, with bargain hunting and safe-haven demand supporting prices following steep one-day declines.
The minutes showed policymakers remain divided, stressing that further rate cuts will depend on sustained progress in lowering inflation.
Traders largely expect the Fed to hold rates steady at the next meeting, while expectations for a March decision remain evenly split.
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