Wall Street's main stock indexes hit their lowest point in over a week on Monday, as thin trading volumes and elevated Treasury yields overshadowed the typically robust year-end period for equities.
At 11:45 a.m. ET, the Dow Jones Industrial Average fell 350.71 points, or 0.82%, to 42,641.50, the S&P 500 lost 52.08 points, or 0.87%, to 5,918.76 and the Nasdaq Composite lost 195.71 points, or 0.99%, to 19,526.32.
All 11 S&P 500 sectors were in the red, with consumer discretionary leading declines.
Growth stocks such as Tesla (NASDAQ:TSLA) and Amazon.com (NASDAQ:AMZN) dropped 2.2% and 1.3%, respectively. Chip company Broadcom (NASDAQ:AVGO) lost 2.6%, sending the semiconductor index more than 1.9% lower.
The weakness was atypical as equities tend to do well in the last five trading days of December and into the first two days of January, a phenomenon dubbed the Santa Claus rally. The S&P 500 has gained 1.3% on average during the period since 1969, according to the Stock Trader's Almanac.
The index has been trading in a bull market for over two years and is poised to end its second consecutive year with gains of more than 20%.
However, a rise in Treasury yields since early December has pressured the S&P 500 and the Dow, setting the indexes on track for their roughest month since April.
The yield on the benchmark 10-year note dipped on the day to around 4.5%, but was still near its highest level since May 2024.
Some analysts expect President-elect Donald Trump's policies to be inflationary and markets have toned down their rate-cut expectations for 2025 after the Federal Reserve struck a cautious tone at its recent meeting. Traders now expect the first reduction in May next year, according to the CME Group's (NASDAQ:CME) FedWatch Tool.
"Investors are looking forward to two big things (next year): whether Trump's policies are going to be pro-growth or not, and if the Fed is going to continue injecting easy money into the system," said Adam Sarhan, chief executive of 50 Park Investments in New York.
"Since the last Fed meeting, the market has been down a lot because of the concern that the Fed can be more hawkish and less dovish."
Later in the week, investors will scrutinize the ISM manufacturing activity survey for December and a weekly report on jobless claims, ahead of a key employment report due in the following week.(Cay) Newsmaker23
Source: Investing.com
President Donald Trump was happy to see the Federal Reserve cut interest rates by 25 basis points this week, but wants to see further reductions in borrowing costs, White House spokeswoman Karoline Le...
The number of US citizens submitting new applications for unemployment insurance went up to 236K for the week ending December 6, according to a report from the US Department of Labour (DOL) released o...
Employment in Australia dropped by 21,300 to 14.66 million in November 2025, swinging from a downwardly revised 41,200 gain in the previous month and missing market expectations of a 20,000 increase. ...
Compensation costs for civilian workers in the United States increased 0.8% in the third quarter of 2025, slowing from a 0.9% increase in the previous period, slightly below market expectations of 0.9...
The better-than-expected JOLTS data briefly strengthened the dollar, indicating the relatively solid US labor market, but gold continued to rise. The market interpreted this data as a signal that the ...
Silver prices are likely to stabilize and strengthen on December 16, 2025, amid growing global investor caution. Pressure in the US and Asian stock markets, particularly from weakening technology and artificial intelligence stocks, is driving...
Gold prices are likely to strengthen on December 16, 2025, as global investors become increasingly cautious. Pressure on Wall Street and the weakening of technology stocks, particularly the artificial intelligence sector, have prompted market...
The USD/CHF currency pair fell on December 16, 2025, amid continued US dollar weakness in global markets. The dollar briefly approached a two-month low as investors awaited key economic data from the US, including the pending employment report, as...
Asian markets opened lower in the last full trading week of 2025, fueled by concerns about the prospects for tech company profits and growing AI...
Pasangan mata uang EUR/USD mengawali pekan ini dengan nada sedikit melemah di sesi Asia, diperdagangkan di sekitar 1,1730, turun kurang dari 0,10%...
Stocks rose Monday led by a broad array of names as traders bet data set for release this week will point to tame inflation and strong economic...
New York Federal Reserve President John Williams said on Monday the U.S. central bank's interest rate cut last week leaves it in a good position to...