US equity markets ended modestly lower on Tuesday, extending losses for a third straight session as investors navigated year-end profit-taking, shifting expectations around Federal Reserve policy, and sharp moves across technology, metals, healthcare, and China-linked stocks.
The Dow Jones Industrial Average declined about 0.2%, while the S&P 500 fell roughly 0.1%. The Nasdaq Composite slipped close to 0.2%, weighed down by weakness in large-cap technology shares.
Tech Stocks Under Pressure
Technology names remained a drag after a rotation out of high-flying AI and EV stocks. Nvidia and Tesla continued to face selling pressure following recent rallies, with investors locking in gains ahead of the calendar year-end. Concerns that the AI trade may be overly concentrated also resurfaced, adding caution around mega-cap exposure.
Fed Minutes Keep Markets on Edge
Attention stayed focused on minutes from the Federal Reserve’s December policy meeting, which showed divisions among officials over the recent 25-basis-point rate cut. While most policymakers agreed further easing could be appropriate if inflation continues to cool, several members questioned whether economic conditions currently justify additional cuts. Markets are now pricing in a strong chance that rates will remain unchanged in January.
Precious Metals Rebound Sharply
After suffering their steepest one-day fall in years, precious metals rebounded strongly. Silver futures surged more than 7% intraday, while gold prices climbed around 1%, as traders repositioned following margin changes and heavy liquidation earlier in the week. Metals remain among the strongest-performing assets of 2025.
Stock Movers: Healthcare, China, and Energy
Molina Healthcare jumped after prominent investor Michael Burry published a bullish outlook, calling the stock deeply undervalued despite operational challenges.
Baidu rallied sharply, outperforming other Chinese tech peers amid renewed optimism around AI and autonomous vehicle partnerships.
Nio and XPeng also advanced, tracking broader strength in China-linked equities.
Newmont and other gold miners gained alongside rising bullion prices.
AI, Power, and Infrastructure in Focus
Elsewhere, Meta Platforms drew attention after announcing a multibillion-dollar acquisition of an AI agent startup, underscoring Big Tech’s continued push into automation and enterprise AI tools. Separately, Goldman Sachs featured in headlines for co-leading financing on a large Texas-based power generation project designed to support AI data centers, highlighting rising energy demands tied to AI expansion.
Year-End Trading Context
With the final trading day of 2025 approaching, market activity remains thin and highly sensitive to sector rotations. US equity markets will stay open on New Year’s Eve with regular hours, while bond markets are scheduled to close early.
