On Monday, December 29, 2025, U.S. financial markets experienced a noticeable decline amid a mix of economic concerns and investor caution. The S&P 500, Dow Jones Industrial Average, and NASDAQ Composite all closed lower as traders reacted to geopolitical tensions and looming economic data announcements. Analysts indicated that uncertainties surrounding potential interest rate hikes from the Federal Reserve were weighing on market sentiment.
Investors were particularly attentive to upcoming employment and inflation reports, fearing that these could influence the Fed’s next moves. Additionally, ongoing supply chain issues and weaker-than-expected earnings forecasts from technology companies contributed to the downward trend.
Market analysts suggested that the end-of-year volatility was exacerbated by profit-taking as investors reevaluated their portfolios before the new year. Despite the day’s losses, some sectors, such as energy and utilities, showed resilience, reflecting a broader trend of sector rotation in response to changing economic signals. Overall, market participants remain cautiously optimistic as they approach 2026.
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