Correction Led by Large Tech Stocks as Risk-Off Sentiment Grows
FOMC Minutes to Be Released on the 30th
International Silver Prices Fall Over 6% After Hitting All-Time High
All three major indices on the New York Stock Exchange in the United States declined on December 29, the first trading day of the final week of 2025 (local time). As the year-end approaches, profit-taking has emerged, leading to a noticeable risk-off sentiment, particularly among large technology stocks. Silver prices, after reaching an all-time high, are now showing a downward trend.
Traders are working on the floor of the New York Stock Exchange (NYSE) in the United States. Photo by AFP
As of 9:35 a.m. on the New York Stock Exchange, the blue-chip-focused Dow Jones Industrial Average was down 78.77 points (0.16%) from the previous trading day, at 48,632.2. The S&P 500, which tracks large-cap stocks, had fallen 21.91 points (0.32%) to 6,908.03, while the tech-heavy Nasdaq Composite was trading at 23,457.347, down 135.749 points (0.58%).
By sector, technology stocks-particularly those related to artificial intelligence (AI)-were broadly weaker. Nvidia was down 1.32%. Broadcom had fallen 0.64%, AMD was down 0.28%, and Oracle was trading 0.18% lower.
This trend emerged after the S&P 500 set an intraday all-time high on December 26, then ended the session with a slight decline. This year, major indices on the New York Stock Exchange posted double-digit gains. The S&P 500 rose 18% from the start of the year, while the Dow Jones and Nasdaq climbed by more than 14.5% and 22%, respectively.
Wall Street is currently in what is known as the "Santa Claus Rally" period. Traditionally, this refers to the last five trading days of December and the first two trading days of January. Since 1950, the S&P 500 has risen during this period 78% of the time, with an average return of 1.3%.
The market's main focus this week is the minutes from the Federal Reserve's December Federal Open Market Committee (FOMC) meeting, which will be released at 2 p.m. on December 30. Investors are expected to look for clues regarding the FOMC members' economic outlook and the path of next year's benchmark interest rates. Previously, at its regular FOMC meeting on December 10, the Fed cut the benchmark rate by 0.25 percentage points, adjusting it to a range of 3.5% to 3.75% per year.
Whether the AI boom-which fueled the stock market this year-will continue into next year is also a key point of interest for investors.
Richard Flax, Chief Investment Officer at Moneyfarm, said, "The question of whether AI is a bubble will remain one of the most important concerns for investors in 2026," adding, "Given the current scale of investment and the pace of innovation, even skeptics will find it difficult to ignore the impact on the market and the real economy."
U.S. Treasury yields were slightly weaker. The yield on the 10-year U.S. Treasury note, the global benchmark for bond yields, stood at 4.11%, while the yield on the 2-year note, which is sensitive to monetary policy, was at 3.46%-both down 1 basis point (1bp = 0.01 percentage point) from the previous session.
Silver prices, after surpassing $80 per ounce due to increased speculative trading and concerns over supply shortages, are now down about 6.43%.
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