US stock markets kicked off the final trading week of 2025 on a negative note, with major indices opening in the red on Monday. Despite a year of robust gains largely powered by technology companies, investors saw early declines across the board as the year draws to a close.
Major Indices See Early Declines
In the initial minutes of trading, the benchmark S&P 500 index slipped 0.2 per cent. With only three trading sessions left in the year, this key index remains up more than 17 per cent for 2025 and is poised to secure its eighth straight monthly gain. The Dow Jones Industrial Average fell by 44 points, translating to a 0.1 per cent drop. The tech-centric Nasdaq composite experienced the most pronounced early slide, declining by 0.3 per cent.
The downward trend became more pronounced twenty minutes after the opening bell. The S&P 500's losses deepened to 0.4 per cent, bringing it to 6,904.93, though it retains a yearly gain exceeding 14 per cent. The Dow Jones fell 0.3 per cent to 48,585.06. The Nasdaq saw the biggest dip of the three, falling 0.6 per cent to 23,461.39.
Tech-Led Rally Defies Year-End Profit Booking
This year's market performance has been dominated by the technology sector. The Nasdaq has been the best-performing major index in 2025, a feat driven primarily by substantial gains in shares of industry leaders like Nvidia and Google's parent company, Alphabet. This surge occurred even amid growing investor concerns about potentially overstretched valuations in artificial intelligence (AI) stocks and questions about sustained funding for large-scale projects.
Commenting on the quiet trading activity, Jack Ablin, Chief Investment Officer at Cresset Capital, noted, "There is some tech profit taking and no information to really drive markets." He suggested that this subdued environment could paradoxically support a stock rise in the year's final days, as quoted by AFP.
Mixed Global Signals and Company-Specific Moves
While US equities opened lower, global markets presented a mixed picture. European and Asian equities traded without a clear direction. In the bond market, US Treasury yields saw a slight easing.
In individual stock news, athletic apparel company Lululemon saw its shares rise 1.4 per cent. This uptick followed reports that company founder Chip Wilson is engaged in a proxy fight to appoint three new directors to the company's board.
As 2025 concludes, the market's story remains one of remarkable annual growth facing typical year-end volatility and profit-taking, setting the stage for the new year.
