Markets that had been carrying a yearlong glow cooled on Monday as investors took profits in several of 2025’s biggest winners and the precious-metals rally came unglued.
The S&P 500 slipped about 0.3% after back-to-back losses, the Nasdaq Composite fell roughly 0.5% and the Dow dropped about 0.5% — wiping a little of the late‑year enthusiasm that had powered large gains in 2025. Benchmarks remain well ahead for the year: the S&P is up in the mid‑teens and the Nasdaq has delivered roughly 20%‑plus gains in a banner year led by AI and big tech winners.
AI winners on the defensive
Shares of AI‑linked and other large-cap tech names led the pullback. Nvidia eased roughly 1%–1.2% on the session, Palantir slid, Oracle gave back ground and Tesla took a steeper hit (more than 3% in some trade snapshots). Investors and strategists told reporters they’re wary of “overbuilding” the AI trade — a phrase that surfaced on CNBC as fund managers weighed whether valuations have gotten ahead of near‑term fundamentals.
The broader story that propelled equities this year — heavy exposure to AI infrastructure and cloud demand — still looks intact, but traders are recalibrating how much of 2026’s profits are already priced in. The market’s sensitivity to AI headlines also shows up in deal activity: Nvidia’s $5 billion stake in Intel completed recently, underscoring tech’s active corporate choreography even as sentiment oscillates.
If you want signals beyond headlines, keep an eye on new product and platform moves across Big Tech. Developments such as Microsoft’s push into in‑house image models and Google’s evolving agentic AI features are part of the backdrop that keeps investor interest alive even when prices wobble — see Microsoft’s AI image play and Google’s AI Mode changes for how product momentum feeds investor expectations: Microsoft Unveils MAI-Image-1 and Google AI Mode Adds Agentic Booking.
Metals: a parabolic run meets a margin call
The most dramatic action hit precious metals. Silver, which had ripped to record territory earlier in the rally, plunged — at one point down more than 7%–8% — after the Chicago Mercantile Exchange raised margin requirements. Gold fell sharply as well, reversing a torrid run that sent the yellow metal well into four‑figure territory this year.
That forced deleveraging exposed how thinly held some of the speculative positions in metals had become. Regulators’ and exchanges’ margin moves are blunt instruments; they can quickly turn a smooth ascent into a cascade when leveraged accounts must either post cash or liquidate.
Little macro drama — but a few data points matter
Beyond headline movers, a couple of macro signals kept traders busy. Pending home sales in November jumped the most since early 2023, a hopeful note for housing momentum as the calendar flips to 2026. Oil prices rose more than 2% on worries about supply and geopolitical friction, giving energy names a lift.
On the policy front, investors are set to pore over the Federal Reserve’s December meeting minutes this week. The minutes could sharpen views about the timing and trajectory of interest‑rate decisions — a critical input for both growth stocks and the beaten‑up parts of the market that stand to benefit from easier financial conditions.
Meanwhile, Treasury yields eased: the 10‑year slipped after recent declines from earlier in the year, reflecting a market that’s increasingly pricing a slower macro backdrop and a central bank that has already eased policy several times in 2025.
What this felt like on the floor
Trading desks described Monday’s action as selective profit‑taking rather than a wholesale change in market regime. That nuance matters: losses were concentrated in names that had run furthest, while many sectors remain positive for the year. Still, when crowded trades — AI chips, certain memory and storage stocks, and speculative metals positions — all move at once, volatility spikes and so do second‑order effects across portfolios.
Traders will return Tuesday with a fresh set of minutes, a smattering of housing data now in the rearview, and only two full trading days left before the calendar turns. Expect headlines and new product developments to keep moving sentiment; after a year defined by big tech and AI narratives, even small shifts in conviction can make for dramatic market headlines.