NEW YORK, January 1, 2026, 08:07 ET — Market closed
- Nasdaq Composite fell 0.8% on Wednesday to finish 2025 at 23,241.99, with trading shut on Thursday for New Year’s Day
- A late-December pullback capped a strong year for big U.S. indexes, led by AI-linked optimism
- Investors turn to Jan. 9 payrolls, Jan. 13 CPI and the start of bank earnings for the next market catalyst
U.S. stock markets are closed on Thursday for New Year’s Day after the Nasdaq Composite slipped 0.8% in the final session of 2025, ending at 23,241.99. The S&P 500 fell 0.7% to 6,845.50 and the Dow Jones Industrial Average lost 0.6% to 48,063.29. 1
The timing matters because the Nasdaq heads into 2026 near record territory after a year in which bets on artificial intelligence powered many of the biggest winners. The late-year dip is the first signal investors will test against hard data on inflation, the labor market and interest rates.
The first trading week of January also tends to bring deeper liquidity — more buyers and sellers, and fewer distortions from holiday-thinned flows. That makes the next session a quick read on whether year-end selling was housekeeping or a change in risk appetite.
Profit-taking weighed on tech and energy shares on Wednesday and extended a four-session Nasdaq slide, leaving the market without a traditional “Santa Claus rally,” a seasonal late-December and early-January lift. Microsoft fell 0.8% and EQT slipped 1.9%, while Vanda Pharmaceuticals jumped after the FDA approved its drug to prevent motion-induced vomiting; volume ran at 11.17 billion shares versus a 20-day average of 15.8 billion, Reuters reported. “I do not expect that the last few days will have so much bearing on the performance of the next year,” said Giuseppe Sette, co-founder and president of Reflexivity. 2
Even with Wednesday’s decline, the Nasdaq still finished 2025 up about one-fifth, reflecting a market that repeatedly leaned back into growth stocks after setbacks. That leaves valuations exposed to any surprise in rates or earnings once the calendar turns.
Investors have also treated the “AI trade” — shorthand for crowding into companies seen as key beneficiaries of artificial intelligence — as a long-duration bet. Those trades usually react fastest when Treasury yields rise, because higher yields can reduce the value of profits expected far in the future.
Before the next session, markets have a clear macro schedule to price. The U.S. employment report for December is scheduled for Jan. 9, followed by the December consumer price index on Jan. 13, according to the Bureau of Labor Statistics calendar. 3
The next Federal Reserve policy decision is set for Jan. 27-28, the Fed’s calendar shows, keeping rate expectations front and center for tech-heavy indexes like the Nasdaq. 4
Earnings are the other near-term swing factor, with big banks set to start reporting mid-month. JPMorgan Chase said it will discuss fourth-quarter results on Jan. 13, and Bank of America lists Jan. 14 as its next quarterly earnings release date. 5
From a technical standpoint, the Nasdaq ended the year a bit above the 23,000 mark, a round-number level many traders watch as an informal support zone. A quick break below it after the holiday could draw in short-term sellers, while a firm hold would suggest the pullback was contained.
