U.S. financial markets pulled back on Monday, December 29, 2025, as investors engaged in profit‑taking following a strong year that saw major indexes reach record levels. Stocks and precious metals both came under pressure, with notable weakness in technology shares and a sharp drop in gold and silver prices.
By the close of trading:
- Dow Jones Industrial Average fell 249.04 points (0.51%) to 48,461.93, reversing early gains as profit‑taking intensified.
- S&P 500 slid 24.20 points (0.35%) to 6,905.74.
- Nasdaq Composite posted a 118.75‑point (0.50%) decline to 23,474.35, pressured by losses in major tech names.
The technology sector led the equity selloff, with investors reducing exposure after another strong run in 2025. High‑profile tech companies such as Oracle (ORCL) and Tesla (TSLA) weighed on sentiment: Oracle shares dropped 1.32% to $195.38 and Tesla fell 3.27% to $459.64. Analysts say some of the weakness reflects year‑end rotation out of high‑beta tech stocks into more defensive sectors.
Precious metals were especially hard hit. Gold futures plunged more than 4%, retreating from recent multi‑year highs, and silver recorded its largest one‑day percentage drop since February 2021, falling 8.07% to $72.73 per troy ounce. Traders pointed to CME Group’s decision to raise margin requirements on metals contracts as a key catalyst for the sell‑off, forcing leveraged positions to adjust or unwind.
Market participants also cited a stronger U.S. dollar and shifting expectations around future Federal Reserve policy as contributing factors. While markets had broadly expected rate cuts in early 2026, traders are now pricing in a more cautious outlook, citing resilient economic data and solid jobs figures that could reduce the urgency for near‑term easing.
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In contrast to equities and metals, the energy sector posted gains alongside rising oil prices. Crude benchmarks like WTI and Brent saw modest upticks as supply concerns and seasonal demand patterns supported prices. Energy stocks, traditionally seen as more cyclical and inflation‑sensitive, benefited from the rotation as investors sought alternatives to overextended tech and commodity positions.
The pullback on December 29 fits broader historical patterns in late‑December trading, when liquidity thins due to holiday closures and traders often rebalance portfolios ahead of the new year. With both the Dow and S&P 500 having set all‑time highs earlier in December, the session’s declines may also reflect normalised volatility after extended gains.
Looking ahead to 2026, analysts warn that markets could face renewed pressure if macroeconomic uncertainty persists, particularly around inflation, yield curve dynamics and geopolitical tensions that could affect risk assets. However, some strategists also highlight that the broader economic backdrop remains relatively stable, which may support a resumption of positive trends once year‑end volatility subsides.
