U.S. stocks opened the final full trading week of 2025 on a more muted note, with all three major indexes falling as pressure on megacap tech stocks weighed on sentiment. The tech-heavy Nasdaq Composite led declines early, dipping around 0.7%, while the S&P 500 slipped roughly 0.5% and the Dow Jones Industrial Average shed around 0.5%.
Despite Monday’s pullback, major averages remain on track to close out 2025 with solid gains. The S&P 500 is up more than 17% year to date, the Dow has climbed over 14%, and the Nasdaq is higher by more than 22%, even after bouts of volatility driven by tariffs, rate uncertainty, and sharp sector rotations earlier in the year.
Market Movers:
- DigitalBridge (DBRG) +9.7%: Shares jumped after reports said SoftBank is in advanced talks to acquire the alternative asset manager, which focuses heavily on data centers and digital infrastructure. Investors reacted positively to the prospect of a take-private deal that would value DigitalBridge’s AI-linked assets at a premium.
- Ultragenyx Pharmaceutical (RARE) -44.6%: The biotech stock plunged after its Phase 3 trials for setrusumab failed to meet primary endpoints in reducing fracture rates for osteogenesis imperfecta. Management said it will cut expenses sharply while reassessing the future of the program, rattling investor confidence.
- Novo Nordisk (NVO) -1.6%: Shares slipped following reports that the company cut prices for its Wegovy obesity drug in parts of China ahead of looming patent expirations. The move raised concerns about pricing pressure in key international markets.
- Newmont (NEM) -3.0%: The gold miner fell as precious metals pulled back sharply from recent record highs. The decline followed margin increases in silver futures and profit-taking across the metals complex.
- Olaplex (OLPX) +5.0%: Shares rallied amid heavy trading volume as investors positioned for a year-end rebound following a volatile 2025. The stock remains sharply lower for the year but has gained momentum in recent weeks.
Megacap Tech and Metals Drive Votality
Losses in Nvidia and Tesla weighed heavily on the Nasdaq, as investors continued trimming exposure to crowded megacap trades after a strong run earlier in the year. Tech weakness coincided with a steep reversal in precious metals, where silver fell as much as 7% and gold slid more than 3% after a parabolic rally to record highs. Traders pointed to higher margin requirements in silver futures and profit-taking as catalysts for the pullback, while industrial demand concerns added pressure. The sharp moves underscored how quickly momentum trades can unwind during thin, holiday-shortened sessions.
Housing Data Offers a Bright Spot
One area of relative strength came from the housing market, where pending home sales in November jumped the most since early 2023. The data suggested that easing mortgage rates and stabilizing home prices are beginning to coax buyers back into the market after a prolonged slowdown. Economists cautioned that activity remains uneven across regions, but the report added to evidence that housing may be turning from a drag into a modest support for economic growth heading into 2026.
Looking Ahead
Investors now turn their attention to the final economic catalysts of the year, with minutes from the Federal Reserve’s December meeting due Tuesday. Markets are searching for clarity on how divided policymakers are over the timing of potential rate cuts in 2026, particularly after a year marked by inflation uncertainty and shifting labor trends. With liquidity thinning and many institutions already positioned for year-end, volatility could remain elevated through the first trading sessions of January. How markets digest Fed signals — and whether the traditional Santa Claus rally extends into the new year — will help set the tone for early 2026 trading.