Santa Claus Rally Fizzles: S&P 500, Dow Slip as Tech Weighs on 2025 Finale
Wall Street’s main indexes slipped in thin trading on December 31, with the Dow down 116 points by midday, as Microsoft and Apple led declines. Despite the late-year dip, major indexes remained on track for double-digit gains in 2025. Investors shifted focus to the Federal Reserve’s 2026 outlook after minutes revealed divisions over further rate cuts. AI and chip stocks drove much of the year’s rally, while some firms lagged sharply.