US stocks dip on penultimate 2025 trading day

Market Overview - Stocks experienced slight declines on Wall Street as trading for 2025 approaches its conclusion, with major indices still on track for double-digit annual gains [1] - The S&P 500 fell by 9.50 points, or 0.1%, closing at 6,894.24, but is projected to achieve an annual gain exceeding 17% [1] - The Dow Jones Industrial Average decreased by 94.87 points, or 0.2%, to 48,367.06, while the Nasdaq composite dropped 55.27 points, or 0.2%, to 23,419.08 [2] Technology Sector - Technology companies, particularly those focused on artificial intelligence advancements, continue to exert significant influence on market performance [2] - Nvidia's stock fell by 0.4% and Apple's by 0.2%, both of which have substantial market capitalizations affecting broader market trends [3] - Conversely, Meta Platforms, the parent company of Facebook, saw a rise of 1.1% as it announced the acquisition of AI startup Manus to enhance its AI offerings [3] Commodities Market - Commodities markets showed notable activity, with gold, silver, and copper prices rebounding after previous declines [4] - Gold prices increased by 1.4% to US$4,386.30 per ounce, while silver prices surged by 10.9% [5] - Copper rose by 4.4% and has seen an annual increase of over 40% due to strong demand, particularly as it is essential for global energy infrastructure [6] Treasury Yields - Treasury yields displayed mixed results, with the 10-year Treasury yield rising to 4.12% from 4.11% [7] - The two-year Treasury yield remained steady at 3.45% [7] - Overall, Treasury yields have significantly decreased throughout the year, influenced by market expectations regarding potential shifts in interest rate policy by the Federal Reserve [8] Economic Context - The Federal Reserve is navigating a complex economic landscape, with consumer confidence declining amid persistent inflation and the impacts of a US-led trade war [9] - Inflation remains high while the job market shows signs of slowing, prompting discussions about potential interest rate cuts by the Fed [10] - The Fed's recent meeting minutes indicate caution and divisions within the central bank regarding economic threats, with expectations that interest rates will remain steady in January [11]