Wall Street slips as tech continues to weigh, but nears annual gains

Wall Street’s major indexes slipped ‌in ​the final trading session of 2025, but ‌approached a positive end to a year dominated by President Donald Trump’s tariff uncertainties and ​a euphoria around AI-focused stocks.

The S&P 500, Dow and Nasdaq were on course to log double-digit gains this year - their third consecutive year.

On the day, ‍tech stocks extended losses, slipping 0.2%. Microsoft ​and Broadcom fell 0.3% and 1%, respectively.

At 10:06 a.m. ET, the Dow Jones Industrial Average fell 120.36 points, or 0.25%, to 48,246.70, ​the S&P 500 ⁠lost 13.49 points, or 0.20%, to 6,882.75 and the Nasdaq Composite lost 43.35 points, or 0.18%, to 23,375.73.

Wall Street is on track for a fourth consecutive session in the red - an anomaly given expectations for a year-end “Santa Claus rally”, when the S&P 500 typically gains over the last five trading days of the year and the first two in January, according to the Stock Trader’s ‌Almanac.

Meanwhile, the S&P 500 and the Dow are set to close their eighth month on the trot in the green, ​bolstered ‌by an insatiable appetite for artificial ‍intelligence stocks that pushed ⁠all three indexes to record highs this year.

Wall Street’s strong 2025 exemplifies a stellar comeback from April lows, when Trump’s ‘Liberation Day’ tariffs sparked a meltdown in global markets, with trade-war jitters threatening growth and clouding the outlook for monetary policy in the world’s biggest economy.

Bellwether chipmaker Nvidia - up 40.6% so far this year - has been one of the beneficiaries, becoming the first publicly traded company to hit a $5 trillion market capitalization.

Communication services index emerged as the top performer on the S&P 500 this year, powered by a 65.1% jump in Alphabet, nearing its best yearly performance ​since 2009.

The company has seen numerous catalysts this year in the form of AI deals, Berkshire Hathaway’s $4.9 billion stake and an antitrust ruling win against breaking up the Google parent.

The Federal Reserve’s interest rate trajectory will set the tone for global markets heading into 2026, after mild economic data this month and expectations of a new dovish Fed chair prompted investors to price in further reductions.

“Describing 2025 as ‘resilient’ might be an understatement. The economy showed remarkable strength by overcoming higher inflation, a slowing labor market, fewer rate cuts than originally expected, and a sharp rise in the effective tariff rate,” said Adam Turnquist, chief technical strategist for LPL Financial.

“Despite these challenges, growth remained steady without slipping into recession.”

Among stocks, Nike gained 1.8% after CEO Elliott Hill bought its stock for about $1 million.

Vanda Pharmaceuticals jumped 30.5% after the ​U.S. Food and Drug Administration approved its drug for the prevention of motion-induced vomiting.

Declining issues outnumbered advancers by a 2.01-to-1 ratio on the NYSE, while by a 1.69-to-1 ratio on the Nasdaq.

The S&P 500 posted no new 52-week highs and no new lows, while the Nasdaq Composite recorded 14 new highs and 94 new lows.

Trading volumes were thinner ​than usual in the holiday-shortened week, with markets closed on Thursday for New Year’s Day.