Stock Market Today: Stocks tumble into final trading days of 2025
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U.S. stocks moved firmly lower in early Monday trading as investors pared risk into the final two trading days of the year amid elevated Treasury bond yields and interest rate risks.
Updated at 9:35 AM EST
Red open
The S&P 500 was marked 77 points, or 1.28% lower in the opening minutes of trading, with the Nasdaq down 308 points, or 1.56%.
The Dow fell 477 points while the mid-cap Russell 2000 dropped 22 points, or 1%, to extend its worst monthly performance in more than two years.
Updated at 9:08 AM EST
VIX surge
Stock futures are falling sharply, with the market's key volatility gauge rising nearly 15%, as investors head into the final two trading days of the year on unsteady footing.
Nvidia, the market's key stock, is down 2% in premarket trading, with Tesla down 2.7% and Broadcom ( AVGO ) down 3.3%.
The S&P 500 is now called 72 points lower while the Nasdaq is called 283 points to the downside and the Dow expected to fall 422 points at the opening bell.
The VIX index, meanwhile, was marked at $18.31, suggesting traders are expecting a daily swing of 1.14%, or 68 points, for the S&P 500 each day for the next 30 days.
Stock Market Today
Stocks ended sharply lower on Friday, with megacap tech names leading the three major indexes into the red and hauling the S&P 500 into negative territory for the month. Investors booked profits from the sector's massive performance over the whole year.
Treasury bond yields remained elevated amid the uncertainty tied to the Federal Reserve's rate path and the implications of policies on trade, immigration and taxation planned by President-elect Donald Trump.
Benchmark 10-year-note yields backed off their early May highs in overnight trading but were still changing hands just north of 4.6% heading into the start of the New York session. Two-year notes were pegged at 4.304%.
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.11% lower at 107.877.
On Wall Street, investors are looking at another split week, and the lower trading volumes that usually come with it, as markets will close on Wednesday for New Year's Day.
Futures contracts tied to the S&P 500, which is now up 25.2% for the year, are priced for a modest 9-point opening-bell decline while those linked to the Dow Jones Industrial Average suggest a 44-point pullback.
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The tech-focused Nasdaq, which is up 31.4% for the year, is called 20 points lower with Nvidia ( NVDA ) , Tesla ( TSLA ) and Palantir Technologies ( PLTR ) active in early trading.
Boeing ( BA ) shares were another notable mover, with shares in the planemaker falling 4.5% following the crash of South Korea-based JeJu Air's Boeing 737-800 this weekend in Seoul.
Acting President Choi Sang-mok has called for an inquiry into the crash, the deadliest in the country's history, after all 175 passengers and nearly all of the six-person crew were killed.
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In overseas markets, Europe's Stoxx 600 slipped 0.2% in light-volume trading in Frankfurt, while Britain's FTSE 100 edged 0.21% lower in London.
Overnight in Asia, Japan's Nikkei 225 pulled back from a five-month high to finish its last trading day of the year 0.96% lower in Tokyo, leaving the benchmark around 20% higher for the whole of 2024.
The regional MSCI ex-Japan index, meanwhile, was marked 0.29% lower heading into the final hours of trading.
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