After Hours Report

The stock market finished the holiday-shortened week with a generally soft tone, as low trading volume and a lack of fresh catalysts left equities drifting lower and erased much of the prior week’s advance. The muted action resulted in a largely nonexistent Santa Claus rally, with investors still searching for a clear directional driver as the calendar turned.

The major averages reflected that sluggish backdrop. The S&P 500 (-1.0% WTD), Nasdaq Composite (-1.5% WTD), and DJIA (-0.7% WTD) all declined, weighed down by pressure in several mega-cap names. Small- and mid-cap indexes extended last week’s underperformance, with the Russell 2000 (-1.1% WTD) and S&P Mid Cap 400 (-0.7% WTD) also finishing lower.

Mega-cap weakness was a recurring theme, particularly within growth-oriented benchmarks, as the Vanguard Mega Cap Growth ETF (-1.9% WTD) trailed the broader market. That pressure capped upside at the index level despite pockets of strength elsewhere.

Sector performance was mixed and rotational. Stocks in the information technology sector (-1.5% WTD) struggled overall, reflecting ongoing consolidation in large-cap AI and software names. That said, chipmakers showed improving momentum late in the week, highlighted by a sharp Friday rally that lifted the PHLX Semiconductor ETF (+2.2% WTD) into positive territory for the week and helped stabilize broader tech sentiment.

Consumer-facing areas were among the weakest spots, with the consumer discretionary sector (-3.2% WTD) posting the widest decline as selling pressure lingered in several heavyweight components. Financial stocks also lagged, leaving the financials sector (-1.3% WTD) lower on the week.

By contrast, energy was a clear standout. The energy sector (+3.3% WTD) finished with the strongest gain as geopolitical tensions and firm oil prices supported the group. The industrials (+0.5% WTD) and utilities (+0.9% WTD) sectors also closed higher, offering relative stability amid broader market softness.

Overall, this week’s price action came amid notably light volume due to the holiday calendar, limiting conviction behind both rallies and selloffs. With last week’s gains largely retraced and no major macro or policy developments altering expectations, the market ended the week still in search of its next catalyst as 2026 begins.

• DJIA: -0.7% WTD
• S&P Mid Cap 400: -0.7% WTD
• S&P 500: -1.0% WTD
• Russell 2000: -1.1% WTD
• Nasdaq Composite: -1.5% WTD

Monday:

The stock market faced a relatively broad pullback to start the final week of 2025 following a solid rally in equities over the Christmas week. 

The S&P 500 (-0.4%) further retreated from Friday's record high level, while the Nasdaq Composite (-0.4%) and DJIA (-0.5%) faced similar pullbacks. 

Despite a lack of directional drivers, mega-cap names saw a fair share of profit-taking on the heels of last week's strength, sending the Vanguard Mega Cap Growth ETF 0.5% lower. 

NVIDIA (NVDA 188.22, -2.31, -1.21%) and Palantir Technologies (PLTR 184.18, -4.53, -2.40%) were among the AI-related leaders that sent the information technology sector (-0.5%) lower, though Micron (MU 294.37, +9.58, +3.36%) continues to shine after its most recent earnings report, with today's steady climb helping the PHLX Semiconductor Index (-0.4%) shed over half of its earlier losses. 

While the broader technology sector would improve through the afternoon, the consumer discretionary sector (-1.0%) remained pinned to session lows. Tesla (TSLA 459.64, -15.55, -3.27%) provided weak mega-cap leadership, with the vast majority of the sector's other components moving lower as well. 

It is not an easy task for the major averages to post gains when the market's largest names lag. That task becomes nearly impossible when the broader market also skews towards the negative. In total, seven S&P 500 sectors would finish lower, with decliners outpacing advancers by a roughly 2-to-1 ratio on both the NYSE and the Nasdaq. 

The materials sector (-1.0%) tied for the widest loss, moving lower as metal prices slipped from last week's record high levels. Gold settled today's session $205.80 lower (-4.5%) at $4,345.50/ozt
while silver settled today's session $6.69 lower (-8.7%) at $70.52/ozt. 

Newmont Corporation (NEM 99.81, -5.97, -5.64%), which has rallied amid the push to record highs for precious metals, was the worst-performing S&P 500 name today. 

Meanwhile, the energy sector (+1.0%) posted the only real gain of note today, supported by crude oil futures settling today's session $1.42 higher (+2.5%) at $58.10 per barrel.

The defensive utilities (+0.2%) and consumer staples (+0.1%) sectors captured slight gains amid the underperformance in growth names, while the real estate sector (+0.2%) notched a similar gain. 

The market was relatively starved of corporate developments today, though a fair share of geopolitical headlines crossed the wires. 

While White House Press Secretary Karoline Leavitt said that President Trump and Russian President Vladimir Putin had a productive call in regard to ending the war in Ukraine, Bloomberg reported that Putin told President Trump Russia will revise its negotiating position, raising questions over prospects for a peace deal. The situation remains touchy, and the lack of a clear resolution likely contributed to rising oil prices today. 

Meanwhile, Bloomberg also reported that China is conducting military operations around Taiwan.

To top things off, President Trump told reporters that if Iran is building up its nuclear program, the U.S. will have to "knock them down" again.

It is unclear how much today's geopolitical developments contributed to market weakness, as equities appeared due for a pullback following last week's record-high advance that occurred amid a relatively light catalyst backdrop. With little in the way of fresh catalysts to counter profit-taking pressure, the market struggled to find its footing. However, the major averages remain positioned near record-high levels, and there are still several sessions remaining in the historical Santa Claus rally period that has generally been very supportive of equities. 

U.S. Treasuries began the last week of December on a modestly higher, but generally sleepy, note. The 2-year note yield settled down two basis points to 3.46%, and the 10-year note yield settled down two basis points to 4.12%.

Reviewing today's data:

• Pending Home Sales rose 3.3% month-over-month in November (Briefing.com consensus 0.9%) after increasing a revised 2.4% (from 1.9%) in September.

Tuesday:

The stock market drifted sideways today, with a lack of catalysts keeping the S&P 500 (-0.1%), Nasdaq Composite (-0.2%), and DJIA (-0.2%) within close range of their flatlines. 

Sector strength was a nearly even split, with five S&P 500 sectors finishing at or above their baselines. 

The energy sector (+0.8%) captured the widest gain, with strong leadership from oil and gas producers despite crude oil settling today's session $0.16 lower (-0.3%) at $57.94 per barrel. It was the only sector to finish with a gain wider than 0.5%.

The communication services sector (+0.3%) captured the next widest gain, supported by a strong showing from Meta Platforms (META 666.01, +7.32, +1.11%) amid a muted day for mega-cap stocks that saw the Vanguard Mega Cap Growth ETF finish 0.1% lower. The stock traded higher this morning after the company announced its acquisition of the Singapore-based AI startup Manus. 

Elsewhere in the sector, CNBC and Bloomberg both reported that Warner Bros. Discovery (WBD 28.96, +0.16, +0.57%) plans to reject Paramount Skydance's (PSKY 13.51, +0.01, +0.07%) latest takeover bid. 

Meanwhile, the materials sector finished flat as metal prices rebounded from yesterday's slide. Silver led the advance, settling today's session $7.41 higher (+10.5%) at $77.93 per ozt. Newmont Corporation (NEM 101.87, +2.06, +2.06%) was a standout after falling 5.6% yesterday.

Losses across the six retreating sectors were contained to 0.3% or less. However, the top-weighted information technology sector (-0.3%) was one of the sectors that finished at the bottom of the leaderboard, with its late slide pushing the major averages near session lows at the close.

The sector spent the session oscillating around its flatline, with Intel (INTC 37.30, +0.62, +1.69%) spending time as the top-performing S&P 500 name before giving up around half of its gain. NVIDIA (NVDA 187.54, -0.68, -0.36%) and Apple (AAPL 273.02, -0.74, -0.27%) finished with modest losses, while Palantir Technologies (PLTR 180.84, -3.34, -1.81%) was a laggard. 

Outside of the S&P 500, the Russell 2000 (-0.8%) and S&P Mid Cap 400 (-0.4%) underperformed. 

Ultimately today's low-volume action reflected a market in search of fresh catalysts heading into the new year. Last week's renewed enthusiasm in the AI trade has waned, leaving investors to question if the "Santa Claus" rally has come to a close as the market tilts slightly negative this week. The market will be open for a full trading day tomorrow before closing on Thursday for the New Year's Day holiday.

The 2:00 p.m. ET release of the December FOMC minutes did not produce any surprises. Most policymakers anticipate additional rate cuts if inflation continues to cool, although some officials favor keeping rates at current levels for a period of time.

U.S. Treasuries continued their quiet start to the week with a shallow Tuesday dip that narrowed Monday's gains in the belly of the curve. The 2-year note yield settled down one basis point at 3.45%, and the 10-year note yield settled up one basis point at 4.13%. 

Reviewing today's data:

• The Chicago PMI hit 43.5 in December (Briefing.com consensus 40.4), up from 36.3 in November.
• The FHFA Housing Price Index was up 0.4% month-over-month in October (Briefing.com consensus 0.1%) after decreasing a revised 0.1% (from 0.0%) in September.
• The S&P Case-Shiller Home Price Index was up 1.3% year-over-year in October (Briefing.com consensus 1.1%), down from 1.4% in September.

Wednesday:

The stock market's final session of 2025 was low in volume and largely devoid of catalysts, leaving the S&P 500 (-0.7%), the Nasdaq Composite (-0.8%), and the DJIA (-0.6%) to steadily drift lower in broad fashion. 

The major averages finished December mixed, with the outperformance of many cyclical stocks pushing the DJIA (+0.7% month-to-date) higher, while the S&P 500 (-0.1% month-to-date) finished flattish, and the tech-heavy Nasdaq Composite (-0.5% month-to-date) finished lower. 

Today's retreat encompassed a wide variety of stocks, with all eleven S&P 500 sectors finishing lower. Sector losses ranged from 0.4% (communication services) to 1.0% (real estate), with most sectors finishing at session lows amid a late-afternoon pickup in selling activity. 

The top-weighted information technology sector (-0.9%) was one such sector that lagged late in the trade. NVIDIA (NVDA 186.50, -1.04, -0.55%) previously held a gain, which helped limit losses earlier in the session following a Reuters report that the company approached Taiwan Semiconductor Manufacturing (TSM 303.89, +4.31, +1.44%) to increase production of its H200 chip amid growing demand in China. A separate Reuters report stated that TSM, which is not a component of the S&P 500, was granted an annual U.S. approval for chip-making exports to China.

All of the information technology sector's components closed with a loss. 

The consumer discretionary sector (-0.8%) at least had one component trade higher, being NIKE (NKE 63.71, +2.52, +4.12%), by far the best-performing S&P 500 name today. The stock was lifted by a disclosure that showed CEO Elliot Hill purchased 16,388 shares of common stock, which follows a 50,000-share purchase by Apple (AAPL 271.86, -1.22, -0.45%) CEO and Nike Director Tim Cook one week ago. 

The materials sector (-0.9%) was another underperformer, as precious metal prices slid following the CME Group raising the margin requirements on precious metals futures for the second time in a week. Silver led the retreat, settling today's session $7.30 lower (-9.4%) at $70.63 per ozt, while gold settled $44.00 lower (-1.0%) at $4,342.30 per ozt. Precious metals producer Newmont Corporation (NEM 99.85, -2.01, -1.97%) was unsurprisingly a laggard. 

Outside of the S&P 500, the Russell 2000 (-0.8%) and S&P Mid Cap 400 (-1.1%) furthered the recent trend of underperformance in comparison to their larger-cap counterparts. 

Stocks across the market closed out the year on a subdued note, as this week's broad pullback erased most of last week's gains and stalled the Santa Claus rally soon after it began. The near-term trend skews negative as the market searches for fresh catalysts. Still, stocks posted strong gains in 2025, with the major averages all capturing double-digit gains for the year. 

U.S. Treasuries finished 2025 on a modestly lower note, with the 10-year note yield (+4 basis points to 4.17%, -40 basis points in 2025) settling near the midpoint of this year's range, while the 2-year note yield (+3 basis points to 3.48%, -77 basis points in 2025) finished not far above its 2025 low as the Fed made three cuts to the fed funds rate range since the end of 2024. Today's session was largely uneventful, save for a couple waves of selling that lifted yields to their highest levels of the week.

Bond and equity markets will be closed for the New Year's Day holiday tomorrow, followed by a full session on Friday. 

Reviewing today's data:

• Initial jobless claims for the week ending December 27 decreased by 16,000 to 199,000 (Briefing.com consensus 226,000) from last week's revised rate of 215,000 (from 214,000), while continuing claims for the week ending December 20 decreased by 47,000 from last week's revised rate of 1.913 million (from 1.923 million) to 1.866 million.
  • The key takeaway from the report is that initial claims decreased unexpectedly, coming in below 200,000 for just the second time this year. This should be encouraging to a market that has grown more sensitive to signals from the labor market.

Thursday:

Market closed for New Year's Day. 

Friday:

The stock market made some notable intraday moves in the first session of 2026, with the S&P 500 (+0.2%), Nasdaq Composite (flat), and DJIA (+0.7%) finishing the session mostly higher. 

Mega-cap and tech names opened to pronounced gains, sending the tech-heavy Nasdaq Composite over 1.0% higher this morning. Those gains were reversed in short order, with the mega-cap's move lower sending the major averages into negative territory. 

The broader market trended higher throughout the session, with the DJIA steadily improving as a result. Still, losses across many of the market's largest names prevented further growth at the index level, as evidenced by the outperformance of the S&P 500 Equal Weighted Index (+0.7%) over the market-weighted S&P 500 (+0.2%). 

The top-weighted information technology sector finished flat after an early gain that exceeded 1.5%. Microsoft (MSFT 472.94, -10.68, -2.21%) and Palantir Technologies (PLTR 167.86, -9.89, -5.56%) were notable laggards, though strength across chipmaker names prevented further losses. NVIDIA (NVDA 188.85, +2.35, +1.26%) was the "magnificent seven" standout, while Micron (MU 315.42, +30.01, +10.51%) and Intel (INTC 39.38, +2.48, +6.72%) finished even higher, pushing the PHLX Semiconductor Index (+4.0%) to a sturdy gain. 

Mega-cap pressure would see the consumer discretionary sector (-1.1%) close with the widest loss as Tesla (TSLA 438.07, -11.65, -2.59%) and Amazon (AMZN 226.50, -4.32, -1.87%) slid further into negative territory. Tesla faced pressure after its Q4 production and deliveries report, which showed a 15.7% year-over-year drop in deliveries to 418,000 vehicles.

The Vanguard Mega Cap Growth ETF would finish the day 0.5% lower. 

The communication services (-0.4%) and consumer staples (-0.2%) sectors were the only other sectors to finish lower. 

Meanwhile, eight S&P 500 sectors finished higher, with several notable performances. 

The energy sector (+2.1%) finished with the widest gain despite crude oil settling today's session $0.06 lower (-0.1%) at $57.34 per barrel. OPEC+ is not expected to make any changes to its output plans during this Sunday's policy meeting.

The industrials sector (+1.9%) finished with a similar gain, supported by strength in its construction names such as Comfort Systems (FIX 1003.51, +70.22, +7.52%) and Caterpillar (CAT 598.48, +25.61, +4.47%) and aerospace and defense names such as Boeing (BA 227.71, +10.59, +4.88%). 

The materials (+1.5%) and utilities (+1.2%) sectors also captured gains wider than 1.0%. 

Outside of the S&P 500, the small-cap Russell 2000 (+1.0%) and S&P Mid Cap 400 (+1.3%) decidedly outperformed today, steadily trading higher throughout the session. 

While there were plenty of notable stock- and sector-specific moves in play today, the market remains searching for its next directional driver. Mega-cap weakness limited gains at the index level, though a strong performance from chipmakers reflects continued optimism in the AI trade, which was a driving force of strength in 2025. 

U.S. Treasuries started 2026 with modest losses in the 5-year note and longer tenors, while the short end resisted the pressure, leaving the 2-year note near its closing level from Wednesday. The 2-year note yield settled finished unchanged at 3.48% (unchanged for the week), and the 10-year note yield settled up two basis points at 4.19% (+5 basis points this week). 

• S&P Mid Cap 400: +1.3% YTD
• Russell 2000: +1.1% YTD
• DJIA: +0.7% YTD
• S&P 500: +0.2% YTD
• Nasdaq Composite: flat YTD

Reviewing today's data:

• The S&P Global U.S. Manufacturing PMI hit 51.8 in the final reading for December, unchanged from the preliminary reading and down from 52.2 in November.