NEW YORK, Dec 31, 2025, 02:56 ET — Market closed
- The Dow closed Tuesday down 94.87 points, or 0.20%, at 48,367.06 in holiday-thin trading. 1
- Fed minutes showed policymakers split after a quarter-point rate cut, keeping the 2026 rate path in focus. 2
- Jobless claims are due at 8:30 a.m. ET; U.S. bond markets are set for a 2 p.m. early close, with stocks shut Thursday for New Year’s Day. 3
The Dow Jones Industrial Average ended slightly lower on Tuesday as investors digested Federal Reserve meeting minutes and pared exposure to parts of the tech-heavy rally into the year’s final session. The index finished at 48,367.06, down 94.87 points, or 0.20%. 1
The timing matters. Wednesday is the last U.S. cash equity session of 2025, and trading has been thin, a setup that can amplify swings when big funds rebalance portfolios and traders close books. 4
A fresh debate is taking shape under the surface: whether 2026 returns broaden beyond a narrow group of mega-cap winners. “The valuation gap is so wide, it absolutely is justified to see repositioning,” Mark Hackett, chief market strategist at Nationwide, said. 5
In Tuesday’s tape, communication services stocks held up better than technology, after Meta Platforms rose following its deal for AI startup Manus, while tech names such as Apple and Nvidia edged down. Financial stocks also weighed on the Dow, with losses in Goldman Sachs and American Express among the drags. 4
Outside the index math, investors also kept an eye on fresh company headlines that can move Dow components. Boeing was awarded an $8.6 billion Pentagon contract tied to the F-15 Israel Program, the Pentagon said on Monday. 6
The Fed backdrop stayed central after minutes from the December 9–10 meeting showed a divided committee. The central bank approved a quarter-point cut — 25 basis points, or one-quarter of a percentage point — taking its benchmark rate range to 3.5%–3.75%, and investors are now focused on what comes next. 2
Treasury yields were little changed after the minutes, a sign markets are still trying to settle on a path for rates in 2026. Oil prices finished steady, another brake on big sector swings, though traders have kept a close watch on geopolitics and its impact on energy. 1
Seasonal forces are also in play. Some investors track the so-called “Santa Claus rally,” a calendar pattern that refers to gains in the last five trading days of the year and the first two trading days of January. 7
Before the opening bell, the main scheduled macro test is weekly U.S. jobless claims at 8:30 a.m. ET — one of the few top-tier releases in an otherwise light week. 3
Liquidity could tighten further later in the day. SIFMA recommends U.S. bond markets close early at 2:00 p.m. ET on Dec. 31, and U.S. equity markets are closed Thursday for New Year’s Day. 8
Looking beyond the holiday, investors are lining up the next policy-relevant data. The Labor Department’s Employment Situation report for December is scheduled for Jan. 9, followed by the Consumer Price Index for December on Jan. 13, both at 8:30 a.m. ET. 9
