U.S. equities slipped Monday as a late-year rotation out of tech dragged major indexes into the red. Big Tech stocks, especially those tied to AI, gave back recent gains with no clear catalyst, while precious metals sold off sharply after speculative highs. The S&P 500 and Nasdaq both declined after a strong prior week, reflecting light volume and some positioning ahead of year-end. Meanwhile, silver and gold tumbled from record highs, and oil climbed amid geopolitical tensions.
Key Headlines & Market Movers:
Tech Pullback Caps Index Gains: Mega-cap tech names led declines, with Tesla falling over 3% and Nvidia down 1.2%, reversing last week’s strong rally. AI-linked names like Palantir and Oracle also weakened as concerns emerged about overinvestment in large language model infrastructure. With valuations stretched and profit visibility murky, investors appear cautious heading into 2026 despite a broadly positive longer-term tech outlook.
Silver and Gold Selloff After Margin Hike: Silver dropped more than 8% and gold fell over 4% after both metals hit record highs earlier in the day. The sharp move came as the CME raised margin requirements, triggering profit-taking in an already overbought market. While recent enthusiasm was driven by central bank buying, safe-haven flows, and comments from Elon Musk, analysts see this dip as a healthy correction rather than a fundamental shift in outlook.
Oil Rebounds on Geopolitical Tensions: WTI crude rose 2% to nearly $58 per barrel as U.S.-led diplomatic efforts over Ukraine stalled and tensions with Venezuela added uncertainty. Despite Monday’s bounce, oil remains on track for a fifth straight monthly loss. Market focus now shifts to 2026 demand projections and OPEC+ output decisions.
SoftBank Buys DigitalBridge: SoftBank’s $4B acquisition of data-center investor DigitalBridge sparked a nearly 10% rally in DBRG shares, signaling ongoing appetite for AI-adjacent infrastructure assets. The deal reinforces long-term conviction in digital infrastructure despite short-term volatility in the broader tech sector.
S&P 500 Sector Performance
Looking Ahead
With 2025 wrapping up, markets are digesting gains and preparing for what could be a fourth straight positive year for equities. While sentiment remains constructive, especially around U.S. growth and AI-driven productivity, risks tied to tech overextension, global policy shifts, and commodity volatility may lead to a choppier start to 2026. Light trading volumes and year-end positioning could continue to drive near-term swings.
The Investment Management Group at Duncan Williams Asset Management is led by a team with extensive experience in investment management, financial planning, and client service. President David Scully, CFA®, CFP®, has more than 20 years of experience and is active in Memphis civic organizations. Chief Investment Officer Kyle Gowen, CFA®, CFP®, oversees investment strategy and is engaged with the local community. Investment Analyst Jack Eason, CFA®, provides research and supports charitable initiatives. The IMG team is committed to professional standards, client service, and community involvement. No statement is intended as an offer of investment advice or a guarantee of future results.
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