Stock Market Summary for December 29, 2025

Market Performance Overview

U.S. stocks started the week with a decline as the final trading days of 2025 unfolded. The tech-heavy Nasdaq Composite fell by 0.5%, with major players like Nvidia (NVDA) and Tesla (TSLA) experiencing declines of over 1.2%. The Dow Jones Industrial Average also dipped by 0.5%, while the S&P 500 retreated around 0.3%.

Volatility in Precious Metals

Significant volatility was observed in the precious metals market following a substantial rally to all-time highs. Silver (SI=F) plummeted as much as 7%, bringing its price down to $69.86, while gold (GC=F) futures fell over 4%, hovering near $4,300. Traders were on edge after the Chicago Mercantile Exchange raised margin requirements on silver futures.

Economic Insights and Fed Meetings

In a relatively quiet week regarding economic releases, November pending home sales marked a notable high, signaling growing homebuyer momentum. However, investors eagerly await Tuesday's release of the Federal Reserve's meeting minutes for insights into potential interest rate changes.

Performance of Major Indices in 2025

Despite the rocky start to this week, all three major indices are positioned for impressive 2025 gains. The S&P 500 has seen an increase of over 17%, while the Dow has climbed more than 14%. The tech-centric Nasdaq leads with a remarkable gain of over 21%, even after enduring a bear market earlier this year following President Trump’s tariffs.

A Closer Look at Specific Stocks

Amazon (AMZN), with a year-to-date gain of 6%, is lagging behind its peers, yet it remains a top analyst pick for 2026. Meanwhile, Lululemon (LULU) founder Chip Wilson initiated a proxy fight aimed at changing the company's board during turbulent leadership transitions, sending their stock up 1% on the news.

Oil Prices and Geopolitical Factors

Crude oil prices made gains of over 2%, with Brent crude jumping 2.2% amidst ongoing geopolitical tensions. Investors are balancing hopes for peace in Ukraine with output concerns from Kazakhstan, which experienced a drop due to drone attacks affecting oil facilities.

Market Outlooks Going Forward

As we conclude 2025, analysts like Mohamed El-Erian warn that persistent inflation and geopolitical concerns will significantly impact the economy. With an eye towards the upcoming mid-term election year, the market dynamics are expected to prioritize geo-economics over traditional models. This reflects a changing market landscape as uncertainty lingers over global political conditions.