US stocks end down as tech shares drop ahead of New Year

• Tech giants led declines with Nvidia down 1.2% and Tesla falling 3.3% after hitting record highs, while precious metal miners slumped as gold and silver prices fell from recent peaks
• Despite Monday's losses, the S&P 500 has gained 17% year-to-date and is heading for its third consecutive annual gain, with the index sitting less than 1% below the 7,000-point milestone
• DigitalBridge surged 9.6% on news of SoftBank's $4 billion acquisition, providing a bright spot as declining stocks outnumbered advancers by 2.38-to-1 on the Nasdaq

US Stocks Close Lower as Tech Retreat Dampens Year-End Trading

US equity markets declined Monday, with the Dow Jones falling 0.51% to 48,461.93, S&P 500 dropping 0.35% to 6,905.74, and Nasdaq losing 0.5% to 23,474.35. The pullback was driven by weakness in technology stocks, with Nvidia declining 1.2% and Palantir Technologies falling 2.4%. Tesla dropped 3.3% after hitting record highs last week.

Despite Monday's retreat, all three major indexes remain on track for double-digit yearly gains, with the S&P 500 up approximately 17% year-to-date. The indexes are also positioned for their eighth consecutive monthly gain and third straight yearly advance.

Sector Performance:

• Materials sector declined as precious metal miners fell following a stall in the gold and silver rally, with silver retreating after briefly topping $80/ounce
• Energy stocks gained nearly 1%, tracking a 2% rise in oil prices
• Banking stocks retreated, with Citigroup dropping 1.9% despite gaining 68% year-to-date

Key Corporate Development:

DigitalBridge surged 9.6% on news that Japan's SoftBank Group will acquire the digital infrastructure investor for $4 billion.

Market breadth was negative, with declining issues outnumbering advancers 1.63-to-1 on NYSE and 2.38-to-1 on Nasdaq. Trading volume reached 13.08 billion shares.

Looking ahead, traders await Federal Reserve meeting minutes and weekly jobless claims data in an otherwise light economic calendar week. Market participants remain hopeful for a potential "Santa Claus rally" in the year's final trading days, while strategists maintain optimistic outlooks for 2026, citing expectations for continued economic expansion and further Fed easing.