U.S. stocks were mostly flat on Tuesday as Wall Street entered the final stretch of 2025, with investors digesting Monday’s tech-led pullback and awaiting the release of Federal Reserve meeting minutes later in the day. Trading volumes remained light, reflecting year-end positioning and a thinning holiday calendar.
The Nasdaq Composite and S&P 500 hovered just below the flat line in early trading, while the Dow Jones Industrial Average slipped slightly. Megacap technology stocks weighed on sentiment after recent profit-taking, even as broader markets remained on track to close the year with solid gains following a volatile but resilient 2025.
Market Movers:
- Tesla (TSLA) – Shares were little changed after the company published its own compiled fourth-quarter delivery estimates, pointing to a roughly 15% year-over-year decline. Investors debated whether the unusual disclosure was an effort to temper expectations ahead of the official report, with the loss of the U.S. EV tax credit seen as a major headwind.
- Molina Healthcare (MOH) – The stock jumped nearly 4% after investor Michael Burry published a bullish case comparing the insurer’s valuation to early-stage GEICO. Burry argued Molina’s depressed share price could present long-term upside despite near-term pressure from elevated medical costs.
- Silver futures (SI=F) – Silver rebounded sharply after suffering its steepest one-day drop in more than five years on Monday. The bounce came as traders adjusted to higher margin requirements and reassessed the metal’s parabolic rally tied to industrial and AI-related demand.
Fed minutes in focus
Attention is firmly on the release of minutes from the Federal Reserve’s December meeting, where policymakers delivered a third rate cut of the year while signaling rising caution about the pace of future easing. Investors are looking for clarity on internal divisions at the Fed and how officials are weighing cooling inflation against lingering labor-market uncertainty.
Markets are largely pricing in a pause at the Fed’s January meeting, with expectations more divided over the outlook for cuts later in the spring. Any indication that policymakers remain uneasy about inflation or financial conditions could influence positioning as investors recalibrate for 2026.
Year-end positioning and sector rotation
With only a few trading days left in the year, analysts say much of the market’s movement reflects portfolio rebalancing rather than new conviction. Technology stocks, which led gains for much of 2025, have faced intermittent selling as investors lock in profits, while defensive and value-oriented names have seen selective inflows. Commodities added another layer of volatility, as precious metals reversed sharply after recent record highs. The swings underscored how crowded some late-year trades had become and how quickly sentiment can shift in thin trading conditions.
Looking Ahead
With only a few sessions left in 2025, investors are turning their attention to the Federal Reserve’s December meeting minutes for any final clues on how policymakers are thinking about rate cuts in early 2026. Thin holiday trading conditions could exaggerate moves, but January will bring a sharper test as liquidity returns, portfolios are rebalanced, and earnings season kicks off. Markets will be watching whether megacap tech can regain leadership after recent volatility, how commodity swings feed into inflation expectations, and whether the Fed’s messaging reinforces confidence that monetary policy will become more supportive as growth cools — or keeps risk appetite in check heading into the new year.
