The S&P 500 Index fell 0.3% in midday trading, down less than 1% from its record close on Christmas Eve. Nike Inc. was a bright spot, climbing more than 4% after news its CEO bought shares.
The Nasdaq 100 Index shed 0.3% and Bloomberg’s Magnificent Seven Index was little changed at 11:56 a.m. in New York. All S&P 500 sectors were in the red. Real estate, energy and materials were the biggest decliners, with none falling more than 0.8%.
The benchmark S&P 500 has advanced about 17% in 2025, a gain which follows surges of more than 20% in the two previous years. This year’s rally came despite a sharp dip in April as President Donald Trump introduced a tariff regime that was more onerous than anticipated.
Thin trading volume and minor price swings have defined the final sessions of 2025, bucking expectations for a “Santa Claus rally” where equities enter the new year on a high note.
“Santa seems to be snoozing this go around,” said Phil Segner, a portfolio manager at Leuthold Group. “Losses seem light though. It looks like modest selling on another quiet day.”
A surprising decline in initial jobless claims during the Christmas week reflected an imperfect seasonal-adjustment process, according to Bloomberg economist Eliza Winger. She sees weak hiring as likely to keep the Federal Reserve open to interest-rate cuts in 2026.
Nvidia Corp. rose 0.9% after a report said it approached TSMC to help ramp up production of H200 artificial intelligence chips. Tesla Inc. wavered between small gains and losses after famed investor Michael Burry said he’s not short despite calling the company “ridiculously overvalued” earlier this month.
In biotech, Vanda Pharmaceuticals Inc. soared 26% after the company said the US FDA has approved its treament for motion sickness and Axsome Therapeutics jumped 20% after its drug got priority review for use in Alzheimer’s disease. Corcept Therapeutics Inc. plunged 50% after US regulators rejected the company’s treatment for a form of high blood pressure.
Miners slipped as CME Group raised margins on precious-metal futures for the second time in the space of a week after volatile trading. Newmont Corp. shed 1%. The changes will take effect after the close on business on Wednesday.
Berkshire Hathaway Inc. was little changed. Wednesday is legendary investor Warren Buffett’s last day at the firm. In November he said he was “going quiet,” marking the end of an era.
Written by: Felice Maranz @Bloomberg
The post “US Stocks Slouch Into Year End With No Sign of Santa Claus Rally” first appeared on Bloomberg
