US stocks slip during final trading day of 2025

Market Performance - US stocks are experiencing a decline in afternoon trading, with the S&P 500 down 0.2%, the Dow Jones Industrial Average falling 100 points (0.2%), and the Nasdaq composite decreasing by 0.1% [1] - The S&P 500 is up approximately 17% for the year, marking its third consecutive double-digit annual gain, while the Nasdaq has increased by 21.1% and the Dow has gained 13.4% [3] Investor Sentiment - The market's gains in 2025 were driven by optimism surrounding artificial intelligence (AI) and its potential to enhance profits across various sectors, despite facing turbulence from trade tariffs and interest rate uncertainties [4] - Concerns persist regarding the sustainability of profits from AI technology, which may affect stocks like Nvidia and Broadcom that contributed significantly to market gains [6] Economic Indicators - The Federal Reserve's three interest rate cuts and strong profit reports from companies have supported market growth, although there are worries about stock valuations being too high relative to profits [7] - The job market remains resilient, with fewer Americans applying for unemployment benefits, indicating low layoffs despite a weakening labor market [8] Sector Performance - All sectors in the S&P 500 were in the red, with technology stocks, including Western Digital and Micron Technology, among the largest detractors [9] - Precious metals trading has been volatile, with silver experiencing a significant loss of 9.1% after a previous gain, while gold is still up about 64% for the year [10] Commodity Prices - US benchmark crude oil prices decreased by 0.7% to $57.55 per barrel, and Brent crude fell by 0.6% to $60.97 per barrel [11]