Tech Tumbles Ahead of Year's End: Markets on Alert

Wall Street's indices were poised for a lower start to the year's final week as tech stocks lost ground. Despite record highs previously, anticipation of a 'Santa Claus rally' remains. Investors focus on Fed meeting minutes amid thin trading volumes. Precious metals dipped after prior peaks.

Wall Street's primary indices were set to open the last week of the year on a bearish note Monday, with leading tech stocks relinquishing gains from last week's highs that propelled the S&P 500 to unprecedented levels. The index lingered just 1% below the 7,000-point mark, while the Dow set a record closing high.

The Dow and S&P 500 were on track for their eighth consecutive monthly gains, buoyed by solid performance in tech stocks following positive projections from Micron Technology. Despite lofty valuations and volatility concerns, optimism surrounding AI, interest rate cuts, and a robust economy preserved the bull market initiated in October 2022. All three indices anticipate a third straight yearly increase.

Tech and AI stocks dipped in premarket trading; Nvidia and Oracle both dropped over 1%, with Tesla down 1.1% following a record high. At 08:00 a.m. ET, Dow E-minis fell 55 points, S&P 500 E-minis dropped 20 points, and Nasdaq 100 E-minis lost 121 points. Precious metals, such as silver and gold, declined after reaching record prices last week.

(With inputs from agencies.)