Semiconductor and Commodity Stocks Lead Market Decline on Last Trading Day of Year

Weakness rippled through major US stock indices on the final trading session of 2025, with semiconductor manufacturers and resource-linked companies bearing the brunt of selling pressure. The S&P 500 fell -0.33%, while the Dow Jones Industrial Average declined -0.35%, and the Nasdaq 100 dropped -0.34%. March futures contracts reflected similar pressure, with E-mini S&P futures off -0.35% and E-mini Nasdaq futures down -0.38%, as both benchmark indices hit their lowest levels in over a week.

Semiconductor Sector Leads Losses

Chip makers dominated today’s losers list. Micron Technology slipped more than -1% in the Nasdaq 100, while component suppliers KLA Corp, Qualcomm, and Broadcom all traded lower by more than 1%. Western Digital and Marvell Technology faced comparable headwinds, with data storage companies experiencing particular strain as the sector grappled with sector-wide concerns.

Commodity Complex Under Pressure

Mining stocks encountered significant selling, with precious metals faltering sharply. Gold prices tumbled to their lowest point in 2.5 weeks, while silver experienced a steep -7% decline. This weakness extended to major mining operators, with Newmont and Barrick Mining both down more than -1%. Freeport-McMoRan, a diversified mining company with significant copper and molybdenum exposure, fell -0.69%, while Hecla Mining dropped -0.46%. The broader commodity pullback reflected investor concern about global growth momentum.

Interest Rate Dynamics and Market Support

Bond markets provided some stability amid equity weakness. The 10-year Treasury note yield climbed +1.6 basis points to 4.138% following an unexpected drop in weekly jobless claims to a 1-month low of 199,000, signaling labor market resilience that supported a more hawkish Fed outlook. However, the equity selloff sparked safe-haven demand, which limited Treasury losses. March 10-year T-note futures declined -4 ticks.

Individual Stock Movers and Catalysts

Vanda Pharmaceuticals surged more than +31% after FDA approval of its Nereus drug for motion sickness prevention. Terawulf Inc rose more than +5% following an upgrade to outperform with a $24 price target. Nike advanced more than +2%, leading Dow gainers after insider buying signals emerged from CEO purchases worth approximately $1 million. Nvidia gained +0.43% in Nasdaq leadership after reports suggested the company engaged TSMC for accelerated H200 AI chip production driven by Chinese demand strength.

On the negative side, Corcept Therapeutics plummeted more than -51% after FDA rejection of its relacorliant treatment for hypertension-related hypercortisolism. GlobalFoundries declined more than -2% following a Wedbush downgrade to neutral from outperform.

Market Context and Outlook

Trading activity remained subdued with volume below normal levels, as global markets including Germany and Japan observed New Year closures. Chinese economic data offered some encouragement, with the December manufacturing PMI rising to 50.1 and the non-manufacturing PMI climbing to 50.2, both exceeding expectations. These readings suggested the world’s second-largest economy maintained expansion momentum.

The final two weeks of December historically favor equity markets, with data showing the S&P 500 has risen 75% of the time since 1928, averaging +1.3% gains during this seasonal window. Looking ahead, market participants will monitor the December manufacturing PMI release expected Friday, with current expectations at 51.8. Rate cut expectations have compressed significantly, with swaps pricing only a 15% probability of a -25 basis point reduction at the January 27-28 FOMC meeting.