US markets lose ground at year-end as tech stocks retreat

Peloton and semiconductors lead gains driven by recovery expectations

Among the day's winners, Peloton Interactive stood out with a 3.47% increase, closing at $6.27. This rise reflects investor optimism about the fitness company's potential for financial improvement. Micron Technology, an undisputed leader in the semiconductor sector, climbed 3.36% to $294.37, underscoring the ongoing market attraction for stocks related to data infrastructure and artificial intelligence. eBay also recorded a solid gain of 2.97% to $87.74. The energy sector benefited from rising oil prices, with Expand Energy advancing 2.09%, and giants like ExxonMobil and ConocoPhillips each gaining 1.19%. Arista Networks, specializing in data center network equipment, rose by 1.75%, while Lululemon Athletica increased by 1.71%, profiting from year-end sector rotation. This lineup of winners highlights the market's split between cyclical and defensive stocks, with the energy sector particularly bolstered by geopolitical concerns and tensions in the Black Sea between Russia and Ukraine, which continue to drive up crude oil prices.

Precious metals plummet, dragging miners and Tesla down

The session was marked by a downturn in precious metals, impacting the entire mining sector. Newmont, a global giant in gold mining, plunged 5.64% to $99.81, while copper producer Freeport-McMoRan fell 2.94%. This correction comes after a phenomenal year for the sector, with gold up 65% and silver 147%. Analysts mention profit-taking following this remarkable growth, though the fundamentals of the gold market remain supported by expectations of interest rate cuts by the US Federal Reserve and ongoing geopolitical tensions. Tesla also declined 3.27% to $459.64, reflecting investor concerns about the end of federal tax credits for electric vehicles and the expected contraction in fourth-quarter deliveries. Best Buy dropped 2.54%, while Palantir Technologies, despite its excellent annual performance, fell 2.40% due to profit-taking after its remarkable 145% rise since January. Alibaba retreated 2.46%, and the banking sector showed signs of fatigue, with Citigroup plummeting 1.90% and Bank of America dropping 1.46%, reflecting worries about the macroeconomic environment and the future of US monetary policy.

A Market Caught Between Year-End Optimism and Macroeconomic Uncertainty

This session highlights the delicately balanced context in which markets are operating at the end of 2025. Although the year has delivered remarkable performances with the S&P 500 climbing over 17%, investors remain cautious as New Year's Day approaches. Geopolitical tensions in Ukraine and the Middle East, crucial points for oil trade, are fueling volatility, particularly noticeable in energy prices that fluctuate between supply disruption fears and economic slowdown prospects. The Federal Reserve, having lowered rates in December but signaling a pause in its easing cycle, maintains a balance that weighs on valuations. Macroeconomic data remains mixed, with a labor market that is gradually easing and inflation still slightly elevated. The tech sector, a pillar of stock market growth this year, shows signs of fatigue as debates over the real extent of investments in artificial intelligence and the sustainability of these returns intensify profit-taking. With only two trading days left before the New Year's Day closure, trading volumes might remain limited, potentially amplifying market movement volatility.