Nasdaq leads lower to start the final week of a volatile 2025

• The Dow Jones fell 249 points (0.5%) to 48,462, while the S&P 500 and Nasdaq both dropped around 0.4-0.5%, though markets remain on track for strong yearly gains
• Precious metals experienced extreme volatility with silver plunging 7% after hitting record highs above $84, while gold futures fell more than 3% amid profit-taking
• November pending home sales jumped by the most since early 2023, providing an encouraging sign for housing demand ahead of Tuesday's Fed meeting minutes

US stocks retreated Monday, with the Nasdaq, S&P 500, and Dow Jones all closing down approximately 0.5% in subdued post-holiday trading. The pullback follows a strong Christmas week that saw major indices reach record highs.

Year-to-Date Performance:

• Nasdaq: +21% (leading gains)
• S&P 500: +17%
• Dow Jones: +14%

Key Market Movers:

Megacap tech stocks weighed on indices, with Nvidia and Tesla each dropping more than 1.2%. Small caps underperformed, with the Russell 2000 declining 0.6%.

Commodities Volatility:

Precious metals experienced dramatic swings after recent rallies:

• Silver plunged up to 7% after hitting record highs above $84/ounce, following a 150% surge for the year
• Gold futures fell more than 3%
• Copper reached fresh record highs on industrial demand

Economic Data:

November pending home sales jumped by the most since early 2023, signaling renewed buyer interest in housing. Investors await Tuesday's Federal Reserve meeting minutes for 2026 rate guidance.

Corporate Developments:

• SoftBank announced plans to acquire digital infrastructure firm DigitalBridge for $16+ billion
• SoftBank sold 214.8 million Nvidia shares for $5 billion
• China conducted military exercises around Taiwan, pressuring US-listed Chinese stocks

Market Outlook:

The "Santa Claus rally" period (final five trading days of December plus first two of January) faces an early test as markets enter the final three trading sessions of 2025. Volume remains thin during the holiday period, with investors booking profits and positioning for 2026.