On December 29, the final week of the year saw U.S. stock benchmarks pull back from recent peaks as the year-end rally lost momentum. The S&P 500 Index decreased by 0.35%, closing at 6,905.74, marking a slight retreat after a sustained advance through the year. The technology-heavy Nasdaq Composite Index declined by 0.50%, ending the session at 23,474.35. Meanwhile, the Dow Jones Industrial Average slipped 0.51%, settling at 48,461.93.
The trading day was marked by notable shifts in key sectors, particularly among technology and artificial intelligence-driven companies. Market heavyweights Nvidia and Palantir Technologies saw their shares fall by 1.19% and 2.40% respectively. These movements suggest investors are adjusting portfolios by securing gains in anticipation of 2025, trimming exposure to stocks that had previously demonstrated strong performance.
In addition to the technology sector's softness, gold mining companies faced substantial selling pressure. Shares of Newmont, a prominent gold miner, decreased over 5.6%, coinciding with a notable correction in precious metals prices after recent all-time highs. This decline within the mining sector reflected the broader downturn in gold prices during the session.
Despite these intraday pullbacks, the year-to-date performance of major indices remains robust. The S&P 500 is up approximately 17.4% for the year, while the Nasdaq Composite has risen by 21.6%. These gains are underscored by multiple record highs set throughout the year, indicating a broad recovery and growth in market valuations over the period.
Looking ahead toward 2026, there are diverging perspectives regarding market trajectories. Jeremy Siegel from Wharton pointed towards a potential deceleration in growth among the "Magnificent Seven"—a term often used to describe a group of leading technology firms that have driven market gains. A slowdown in this cohort's expansion could translate into more modest advances for the S&P 500 index overall, tempering expectations after strong performance.
Contrasting this view, other strategists including analysts at Goldman Sachs present a more optimistic scenario. They highlight ongoing economic growth and an anticipated easing of Federal Reserve policies as factors likely to contribute to further market appreciation. This divergence underscores the uncertainty investors may face when positioning portfolios for the coming year.
The precious metals sector also experienced notable adjustments in response to recent market movements. Spot gold prices retreated by 4.4% to $4,349.30, according to data from Apmex. This correction impacted associated financial instruments such as gold exchange-traded funds (ETFs) and shares of gold miners like Newmont and Freeport-McMoRan, the latter declining by 2.94% during the session. The downward shift in gold prices reflects a cooling period after new price records were established earlier in the week.
In sum, the market dynamics at the close of the year reflect a combination of profit-taking, sector-specific corrections, and evolving expectations for 2026. While major indices retain considerable gains over 2023, the near-term pullbacks in technology and gold highlight the risks investors may need to consider as they navigate potential shifts in market leadership and economic conditions.