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Tech Pullback Nudges U.S. Stocks Lower as India Extends Slide on Foreign Selling

Thin holiday trading heightens sensitivity to upcoming Fed minutes and jobless claims.

A person stands in front of an electronic stock board showing Japan's Nikkei index at a securities firm, Monday, Dec. 29, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 17, 2025.  REUTERS/Brendan McDermid/File Photo
The screens show the Korea Composite Stock Price Index (KOSPI), left, the foreign exchange rate between U.S. dollar and South Korean won and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a dealing room of Hana Bank in Seoul, South Korea, Tuesday, Dec. 30, 2025. (AP Photo/Lee Jin-man)
A dealer watches computer monitors near the screen showing the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Tuesday, Dec. 30, 2025. (AP Photo/Lee Jin-man)

Overview

  • U.S. indexes slipped to open the final week, with the S&P 500 down 0.35%, the Nasdaq off 0.5% and the Dow lower by 0.51%.
  • Mega-cap and AI-linked names led the retreat, including Tesla down 3.3%, Nvidia off about 1.2% and Palantir lower by 2.4%, while energy shares rose with oil up roughly 2%.
  • Precious metals pulled back from recent highs, with silver down about 8% and gold lower by more than 4%.
  • India’s Sensex fell 345.91 points to 84,695.54 and the Nifty closed at 25,942.10, pressured by continued FPI outflows totaling about Rs 1.6 lakh crore this year even as DIIs bought shares.
  • Market watchers said the Santa Claus Rally is at risk, with light volumes putting the focus on internal momentum before the release of Fed minutes and weekly jobless claims.