US stocks opened lower on Monday evening, Beijing time, with artificial intelligence-related stocks broadly declining. Traders are preparing to close out a strong 2025.
The Dow Jones Industrial Average fell 74.34 points, or 0.15%, to 48,636.63; the Nasdaq Composite dropped 178.816 points, or 0.76%, to 23,414.281; and the S&P 500 index declined 26.34 points, or 0.38%, to 6,903.60. Artificial intelligence-related trading faced some pressure on Monday, following robust weekly gains for key individual stocks. NVIDIA, Micron Technology, and Oracle were among the stocks moving lower. Last week, NVIDIA rose more than 5%, while Micron and Oracle advanced approximately 7% and 3%, respectively. US stocks closed down on Friday, although the S&P 500 index had briefly touched a historic intraday high of 6,945.77 during the session. For Wall Street, 2025 has been a standout year for US equities, with the S&P 500 index climbing nearly 18% year-to-date. The Dow Jones has gained 14.5%, positioning it for its best annual performance since 2021. The Nasdaq Composite has performed even better year-to-date, surging more than 22%. The US stock market is currently in the midst of the so-called "Santa Claus Rally" – a year-end uptrend that has historically been a strong period for equities. According to the Stock Trader's Almanac, since 1950, the S&P 500 has averaged a gain of over 1% during the last five trading days of the year and the first two trading days of the new year. The economic data calendar is relatively light this week, but investors will get an opportunity to gain further insight into the Federal Reserve's outlook for 2026. The minutes from the Fed's December meeting are scheduled for release at 2 p.m. ET on Wednesday. Powell's Parting Message to Wall Street: Stock Prices Are Already Expensive. Typically, Federal Reserve Chair Powell and other Fed governors avoid commenting directly on stock market performance. However, Powell, whose term is set to expire in May 2026, recently responded to a question by explicitly mentioning the potential influence of stock market valuations on the Federal Open Market Committee's (FOMC) policy decisions. Powell stated, "We do look at overall financial conditions and ask ourselves whether our policies are affecting those conditions in the expected way. But you are right that, for example, by many measures, stock prices are already at quite high valuation levels."
