Stock Market Today (29 December 2025): S&P 500 Futures Slip as Investors Lock In Tech Profits

Mayank

2 months ago

The stock market today (29 December 2025) is starting the final stretch of the year on a cautious note, as U.S. stock futures edged lower in early trading. After a powerful rally that pushed major indexes to record highs last week, investors appear to be taking profits—especially in big technology names that have led the market higher throughout 2025.

While the pullback looks modest so far, it reflects a familiar year-end pattern: trimming winning positions, reassessing risk, and preparing portfolios for the year ahead.

Futures Point Lower After Record Highs

Ahead of the opening bell, futures linked to the S&P 500 slipped about 0.3%, while Nasdaq-100 futures fell closer to 0.5%. Futures tied to the Dow Jones Industrial Average were down roughly 70 points, or about 0.2%.

These moves follow a strong finish to last week, when the S&P 500 briefly touched an intraday record near 6,946 before closing little changed. That record underscored just how far the market has come in 2025, even as investors now pause to catch their breath.

Tech Stocks Lead the Pullback

Technology shares were the main source of pressure in premarket trading. Stocks tied to artificial intelligence and cloud computing—some of the market’s biggest winners this year—saw mild selling.

Nvidia fell more than 1%
Micron Technology and Oracle also declined by over 1%
Tesla slipped alongside other mega-cap tech names

These moves come after strong weekly gains. Nvidia rose more than 5% last week, while Micron and Oracle climbed roughly 7% and 3%, respectively. For many investors, locking in profits near year-end is a practical decision rather than a sign of panic.

A Strong Year Despite the Late-December Dip

Even with today’s pullback, the broader picture remains positive. The S&P 500 is up nearly 18% in 2025, putting it on track for one of its best years of the decade. The Dow Jones Industrial Average has gained about 14.5%, while the Nasdaq Composite has led the way, rising more than 22% year to date.

This performance is especially notable given the sharp swings seen earlier in the year. Markets faced pressure in the spring following new trade tariffs announced by President Donald Trump, which briefly pushed the Nasdaq into bear-market territory. However, strong earnings growth, optimism around artificial intelligence, and easing inflation concerns helped stocks recover and push to new highs.

Santa Claus Rally Still in Play

The market is also in the middle of what traders often call the Santa Claus rally—the period covering the last five trading days of December and the first two sessions of January. Historically, this window has delivered above-average returns.

According to long-term market data, the S&P 500 has gained more than 1% on average during this stretch since 1950. While history never guarantees future results, many investors still view this seasonal trend as a supportive backdrop, even when daily trading turns choppy.

Precious Metals Cool After Record Run

Outside of stocks, gold and silver futures moved lower after a dramatic rally that pushed prices to record highs late last week.

Silver pulled back after briefly trading above $80, while gold futures fell more than 1%. Part of the decline followed a decision by CME Group to raise margin requirements on gold, silver, platinum, and palladium futures. In simple terms, traders now need to put up more cash to hold positions, which often leads to reduced speculative activity.

Despite today’s dip, precious metals remain strong for the year, supported by geopolitical uncertainty, central bank buying, and long-term inflation hedging.

Mixed Signals in Commodities

Other commodities painted a mixed picture:

Copper prices in London continued climbing, driven by strong global demand and fears that future U.S. tariffs could disrupt supply.
Oil prices moved higher after talks aimed at ending the Russia-Ukraine conflict failed to produce a breakthrough. Ongoing tensions between the U.S. and Venezuela also supported crude prices.

These moves highlight how global politics continue to influence markets beyond traditional economic data.

A Quiet Week for Economic Data

The economic calendar is relatively light as 2025 winds down. One data point on pending home sales is due Monday, but it is unlikely to significantly move markets.

The main focus will be on the Federal Reserve’s December meeting minutes, scheduled for release mid-week. Investors will be looking for clues on how divided policymakers may be and what that could mean for interest rates in early 2026.

At the moment, futures markets suggest about an 80% chance that the Fed will leave rates unchanged at its January meeting. However, expectations become less clear for March, as traders weigh cooling inflation against still-resilient economic growth.

Market Analysis: What Today’s Dip Really Means

From a broader perspective, the weakness seen in the stock market today (29 December 2025) appears more like healthy consolidation than a warning sign. After months of gains, some cooling is normal—especially when volumes are thin and many institutional investors are already positioning for the new year.

Importantly, there are no major signs of stress beneath the surface. Corporate earnings remain solid, consumers continue spending, and inflation has moderated compared to earlier peaks. While risks remain—from geopolitics to policy uncertainty—the market’s overall tone is still constructive.

For long-term investors, short-term pullbacks like this often serve as reminders to focus on fundamentals rather than daily price swings.

Looking Ahead to 2026

As Wall Street prepares to close the books on a volatile but rewarding year, attention is shifting toward 2026. Key questions include:

Will interest rates finally start moving lower?
Can tech earnings continue justifying high valuations?
How will global trade policies shape growth?

For now, the market is signaling caution—but not fear. If anything, today’s modest decline reflects confidence built on a strong foundation rather than concern about an imminent downturn.

Final Takeaway

The stock market today (29 December 2025) is seeing mild pressure as investors take profits after a historic run. Tech stocks are leading the decline, precious metals are cooling, and traders are looking ahead to Federal Reserve signals. Despite the dip, 2025 is shaping up as a standout year for U.S. stocks, with momentum largely intact heading into the new year.