The S&P 500 fell Monday as tech took a breather after a strong run-up toward the end of the year.
"There are signs of profit taking in certain momentum corners of the market," Vital Knowledge’s Adam Crisafulli said in the morning note.
At 4:00 p.m. ET (21:00 GMT), the S&P 500 fell 0.3%, the Nasdaq 100 dropped 0.5%, the Dow Jones 0.5%, or 249 points.
NVIDIA Corporation (NASDAQ:NVDA) fell more than 1% leading AI-linked stocks lower as investors scaled back bets on tech into the end of the year, with Palantir Technologies Inc (NASDAQ:PLTR) and Broadcom Inc (NASDAQ:AVGO) also lower.
Tech has led the broader market higher this year, helping the S&P 500 hit a record high as recent as Friday. Trading volumes were expected, however, to remain thin, with many market participants away from their desks ahead of the New Year holidays, limiting directional moves.Wall Street ended last week on a strong note.
Sentiment has also been supported by expectations that the Federal Reserve is nearing the end of its tightening cycle, with markets continuing to price in interest rate cuts next year. Softer inflation data in recent weeks has reinforced bets that the central bank could begin easing policy in 2026, providing a tailwind for risk assets.
The late-December rally has kept attention on the so-called “Santa Claus rally,” a seasonal pattern referring to gains typically seen in the final five trading sessions of the year and the first two sessions of January.
source https://www.investing.com/news/stock-market-news/wall-st-futures-muted-after-strong-week-markets-in-holiday-mode-4423344
