Market Review: December 29, 2025
Closing Recap
On December 29, 2025, U.S. equity markets experienced a downturn following a week of record highs. The major indices closed lower, with the DJ Industrials down 249.04 points (0.51%) at 48,462, the S&P 500 down 24.19 points (0.35%) at 6,906, and the Nasdaq down 118.75 points (0.50%) at 23,474. The Russell 2000 also fell by 15.68 points (0.62%) to 2,519.
Market Sentiment
Investor sentiment shifted as the Fear & Greed Index opened at 49/100 (Neutral), a decline from 57 (Greed) the previous week and a significant improvement from 21 (Extreme Fear) a month prior. Market breadth favored decliners over advancers at a ratio of 7:3, with notable declines in the IWM (-0.56%) compared to SPY (-0.42%) and QQQ (-0.59%).
Sector Performance
Sector performance was mixed, with Energy (+1.18%), Utilities (+0.64%), and Real Estate (+0.22%) showing gains, while Technology (-0.62%), Consumer Discretionary (-0.79%), and Materials (-1.02%) lagged. Overall, five sectors advanced while six declined.
Economic Data
Key economic data released included a 2.6% increase in U.S. pending home sales from November 2024, reaching the highest level in 33 months. The Dallas Fed Manufacturing Index reported a decline to -10.90, worse than the forecast of -6.
Commodities
In commodities, February gold saw a significant drop of $209.10 (4.59%) to settle at $4,343.60 per ounce, likely due to profit-taking after last week's highs. Conversely, February WTI crude oil rose by $1.34 (2.36%) to $58.08 per barrel amid geopolitical tensions involving Ukraine and Russia.
Stock and Sector News
Autos
- Foresight Autonomous Holdings (FRSX) showcased its technology at an Audi event.
- Porsche (POAHY) is considering selling its stake in Bugatti.
Retail and Consumer Staples
- Lululemon (LULU) founder Chip Wilson initiated a proxy fight for board changes.
- Kroger (KR) launched a program to enhance food access.
Energy
- Frontera Energy (FECCF) announced a $120M agreement with Chevron (CVX).
- Duke Energy (DUK) reported significant savings for customers due to infrastructure investments.
Biotech & Pharma
- Unicycive Therapeutics (UNCY) resubmitted a new drug application.
- Praxis Precision Medicines (PRAX) received breakthrough therapy designation from the FDA.
Conclusion
As the market heads into the final trading days of the year, the mixed performance across sectors and the economic indicators suggest a cautious outlook among investors. The upcoming weeks will be critical in determining the market's direction as it navigates through the holiday season and into the new year.