Wall Street Opens Lower as Year-End Rally Pauses Amid Light Trading

Market Overview - U.S. equity markets began the final trading week of 2025 on a subdued note, with major indexes opening lower after a strong year and a recent five-session winning streak [1][2] - The S&P 500 has risen nearly 18% year-to-date, the Dow gained 14.5%, and the Nasdaq Composite increased by 22.2% [1] Market Indexes Performance - On December 29, 2025, the Dow Jones Industrial Average fell 74.3 points (0.15%) to 48,636.63, the S&P 500 dropped 26.3 points (0.38%) to 6,903.6, and the Nasdaq Composite decreased by 178.4 points (0.76%) to 23,414.679 [2] - This decline followed a Friday session where all three indexes closed slightly lower, ending a five-day winning streak, but still posted weekly gains of over 1% [2] Market Sentiment - Current market sentiment reflects profit-taking and repositioning as institutional investors finalize portfolios for year-end [3] - The CBOE Volatility Index (VIX) increased by 1% to 13.60, indicating a slight uptick in market apprehension [3] Upcoming Economic Events - The Federal Reserve's December meeting minutes will be released on December 30, 2025, providing insights into policy decisions and potential rate cuts [4] - Futures traders are currently pricing in two 0.25% rate cuts for 2026, possibly starting as early as March [4] Economic Data Releases - On December 29, U.S. economic data included Pending Home Sales (MoM) for November and the Dallas Fed Manufacturing Business Index for December [5] - Initial jobless claims data will also be released later in the week, contributing to the broader economic picture [5] Company News and Stock Movements - Nvidia (NVDA) shares fell about 2% in early trading despite a 1% rise after licensing AI chip technology from startup Groq, highlighting volatility in the AI sector [6] - Target Corporation (TGT) shares rose by 3.1% after news of hedge fund Toms Capital Investment Management building a significant stake [7] - Coupang, Inc. (CPNG) shares jumped 6.5% after resolving a recent cyber issue with minimal impact [7] - American Airlines Group Inc. (AAL) shares fell 1.5% due to winter storm risks affecting operations [8] - DigitalBridge Group Inc. (DBRG) shares surged 10% after SoftBank acquired the firm for $4 billion, indicating strong interest in digital infrastructure [9] - Tesla (TSLA) stock was down almost 2.5%, while Apple (AAPL) shares saw a slight increase [9] Commodity Market Activity - Gold and silver prices retreated from recent highs, while U.S. crude oil benchmark West Texas Intermediate (WTI) surged over 2% to $58 per barrel amid U.S.-Venezuela tensions [10] - The 10-year Treasury yield slipped to 4.12%, and Bitcoin was trading around $87,500, down from an overnight high [10]