NEW YORK, Dec. 27, 2025, 12:56 p.m. ET — Market Closed
U.S. technology stocks head into the final stretch of 2025 with Wall Street sitting just off record territory—and with several AI- and regulation-driven headlines likely to shape sentiment when trading resumes Monday.
The stock market is closed for the weekend, but the tech-heavy Nasdaq and the broader S&P 500 remain in focus after Friday’s post-Christmas session ended with only minor changes and notably light conviction. The Dow Jones Industrial Average slipped 20.19 points (‑0.04%) to 48,710.97, the S&P 500 dipped 2.11 points (‑0.03%) to 6,929.94, and the Nasdaq Composite eased 20.21 points (‑0.09%) to 23,593.10. Trading volume totaled about 10.22 billion shares, well below the recent 20-day average cited by Reuters—an important backdrop because thin liquidity can amplify price swings in either direction. [1]
Holiday-thin trade, but tech remains the center of gravity
Even with Friday’s pause, 2025 has still been a technology-led year. Reuters noted that communication services, technology, and industrials have outperformed the broader market year-to-date—evidence that investors continue to pay up for businesses tied to AI infrastructure, cloud software, and digital advertising. [2]
At the same time, the market’s leadership is no longer “only tech.” In a week-ahead outlook, Reuters reported that—with just a handful of sessions left—the S&P 500 was up nearly 18% for the year and the Nasdaq was up about 22%, yet the S&P 500’s technology sector has fallen more than 3% since the start of November, while other areas such as financials, transports, healthcare, and small caps have put up stronger runs during that period. [3]
That rotation matters for investors who have treated mega-cap technology stocks as a one-way bet. According to Reuters, Anthony Saglimbene, chief market strategist at Ameriprise Financial, framed recent market action as a shift toward areas with more moderate valuations—and as a sign investors are growing more confident the economy can keep absorbing shocks. [4]
“Santa Claus rally” watch: the calendar can move markets
Year-end seasonality is also back in the conversation. Friday marked early days in the window often associated with the “Santa Claus rally,” the seasonal period that runs through the last five trading days of the year and the first two of the next. Strategists caution that the pattern isn’t a guarantee—but investors watch it because momentum and positioning can snowball when volumes are thin.
Ryan Detrick, chief market strategist at Carson Group, told Reuters that after a strong multi-day rally, markets were effectively “catching our breath” and that the Santa-rally period still leaves time for an “upward bias” into year-end. [5]
Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest Wealth Management, added in Reuters’ week-ahead piece that “momentum is certainly on the side of the bulls,” while still emphasizing headline risk. [6]
Nvidia and the AI chip race: why the Groq agreement is a big weekend talking point
Among the most important technology-stock headlines in the last 24–48 hours: Nvidia’s agreement to license chip technology from AI startup Groq and hire its CEO, a development Reuters highlighted as a key driver of Nvidia’s move higher on Friday. [7]
Why does this matter beyond one ticker? Because investors are increasingly differentiating between the two major phases of AI computing:
- Training (building large AI models), where GPUs have dominated, and
- Inference (running those models cheaply and quickly at scale), where custom accelerators and software optimizations are drawing fast-growing attention.
Investor’s Business Daily described the Groq agreement as “strategic,” pointing to the market’s broader shift toward inference and the competitive pressure from custom silicon approaches. [8]
For the broader technology sector, Nvidia’s move reinforces a theme that has defined 2025: the market continues to reward companies that can defend (or expand) their position in the AI supply chain—even as investors debate how quickly AI spending translates into margins and cash flow.
Robotaxi scrutiny returns: Waymo outage raises regulatory questions
Another tech-adjacent catalyst that could influence sentiment in the coming sessions: intensifying scrutiny around autonomous vehicles and robotaxis—an area that touches some of the market’s largest technology names.
In a Reuters analysis published Saturday, a power outage in San Francisco earlier this month led to Waymo robotaxis stalling and snarling traffic when traffic lights stopped working, renewing debate over whether the industry is prepared for major emergencies and how “remote operations” should be regulated. Reuters reported that California regulators said they are looking into the incident, and Waymo said it is implementing fleet-wide updates to refine its process. [9]
Reuters quoted Philip Koopman, a Carnegie Mellon University professor and autonomous-technology expert, arguing that regulators should require proof that more severe scenarios would be handled properly—while Missy Cummings, director of the George Mason University Autonomy and Robotics Center and a former adviser to the U.S. road safety regulator, pointed specifically to the need for rules governing remote operations and backup systems. [10]
For technology-stock investors, this matters because the robotaxi narrative spans multiple mega-cap ecosystems—from Alphabet’s Waymo to rivals and adjacent players racing to commercialize autonomy. Regulatory risk (and operational risk during crises) can quickly shift how investors discount long-dated growth stories.
China tightens the spotlight on consumer-facing AI with emotional interaction
Overnight and weekend regulatory developments can be especially important for high-multiple technology stocks. On Saturday, Reuters reported that China’s cyber regulator issued draft rules for public comment aimed at tightening oversight of AI services that simulate human personalities and engage users in emotional interaction. [11]
According to Reuters, the draft framework would apply to public-facing AI products and services in China with simulated personality traits and emotional interaction across text, images, audio, and video. It would also require providers to warn users against excessive use, intervene when users show signs of addiction, and establish systems for algorithm review, data security, and personal information protection—along with content restrictions. [12]
Even for U.S.-listed technology stocks, China policy signals can ripple through sentiment—especially for companies with China-exposed supply chains, consumer demand sensitivities, or AI ambitions that intersect with cross-border rules.
What investors should know before the next session
Because the market is closed, the near-term question for technology stocks becomes: what’s most likely to move prices when trading reopens Monday, and what could shape the final days of 2025?
1) Watch liquidity: thin trading can exaggerate tech moves
Reuters emphasized that year-end portfolio adjustments can add volatility in a holiday-shortened, low-volume environment. [13]
2) The Fed remains the macro lever for growth and tech valuations
Technology stocks are especially sensitive to interest-rate expectations. Reuters noted the Federal Reserve lowered its benchmark rate by 75 basis points over the last three meetings of 2025, and investors remain focused on the pace of cuts in 2026. [14]
3) Key scheduled catalysts: housing data and FOMC minutes
Charles Schwab’s market update flagged Pending U.S. home sales (Dec. 29) and FOMC minutes (Dec. 30) as notable items in the upcoming calendar. [15]
Fed minutes are often a direct driver for Treasury yields, which can quickly spill into higher-duration technology stocks.
4) Rotation vs. rebound: tech has more to prove into year-end
As Reuters reported, the S&P 500 tech sector has been weaker since early November even as the major indexes stayed strong—suggesting investors may demand clearer earnings or cash-flow evidence behind AI narratives in 2026. [16]
5) Weekend headlines matter: AI and autonomy are back in focus
From Nvidia’s inference-oriented agreement to renewed robotaxi scrutiny and fresh AI oversight proposals in China, the weekend has added event risk that could show up in Monday’s early positioning—especially for the biggest, most widely held tech names. [17]
Bottom line
Technology stocks are ending 2025 the way they spent much of it: at the center of the market’s biggest narratives—AI compute, platform dominance, regulation, and rate expectations. Friday’s quiet tape didn’t change the bigger picture, but it did reinforce an important tactical reality: as liquidity thins into the final sessions of the year, catalysts like Fed minutes, AI headlines, and risk-off/risk-on shifts in yields can have outsized impact—especially on the Nasdaq’s largest constituents. [18]
References
1. www.reuters.com, 2. www.reuters.com, 3. www.reuters.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.investors.com, 9. www.reuters.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.reuters.com, 13. www.reuters.com, 14. www.reuters.com, 15. www.schwab.com, 16. www.reuters.com, 17. www.reuters.com, 18. www.reuters.com
