The Dow Jones Industrial Average struggled to build on recent gains on Monday, opening the final trading week of 2025 on a subdued note as weakness in major AI-linked stocks weighed on sentiment.
US equities remained close to record highs, but momentum was muted amid thin year-end trading volumes. With a holiday closure later in the week, market participants are bracing for choppy conditions, as reduced liquidity continues to distort price action.
Investor attention is firmly on the final major data release of the year, the Federal Reserve’s Meeting Minutes, due on Tuesday. Beyond that, the economic calendar is largely empty, leaving markets sensitive to sector-specific moves and policy signals.
The S&P 500 briefly touched fresh intraday record highs during the overnight session before easing back toward flat territory. The pullback was driven by renewed softness in the AI technology space and declines in homebuilding-related stocks.
The Dow followed a similar pattern, climbing early before losing steam. By late trade, the index was holding only a modest gain of around 100 points compared with Friday’s close. A key drag came from Nvidia, whose shares fell about 1.7%, pressuring the broader industrial average.
Despite the lacklustre start to the week, US equities remain firmly in bullish territory for 2025, supported by resilient economic growth and easing inflation pressures earlier in the year. However, traders say near-term direction is likely to remain constrained until fresh signals emerge from the Fed.
With volumes expected to stay light into the new year, markets may continue to drift, leaving investors focused on policy guidance rather than macro data as 2026 approaches.
