Major US stock indexes experienced a slight pullback on Tuesday, the final trading days of 2025, as concerns over the high valuations of artificial intelligence-related stocks continued to weigh on investor sentiment.
Market Takes a Breather After Strong Rally
Shortly after the opening bell, the Dow Jones Industrial Average declined by 0.2 percent, settling at 48,380.60 points. The broader S&P 500 Index also edged lower, dropping 0.1 percent to 6,901.00. The technology-heavy Nasdaq Composite Index mirrored the trend, pulling back 0.1 percent to 23,442.33.
Market analysts viewed the dip as a natural consolidation phase. Adam Sarhan of 50 Park Investments commented that it's perfectly normal for the market to pause and consolidate after a significant run. He described the situation as healthy, noting that "the market is consolidating a very strong rally from April's low until October."
Boeing Gains on Major Defense Contract
In individual stock movements, aerospace giant Boeing saw its shares jump 1.3 percent in early trading. This surge followed an announcement from the Pentagon awarding the company a massive $8.6 billion contract to supply F-15 fighter jets to Israel.
This significant defense deal comes at a time of heightened tensions in the Middle East. A fragile ceasefire has temporarily halted two years of war between Israel and Hamas in the Gaza Strip, but both sides have continued to trade accusations of violating the truce.
Investors Eye Fed Minutes, Tech Stocks Dip
Market participants on Tuesday were also keenly awaiting the release of the meeting minutes from the Federal Reserve's most recent policy gathering. These minutes are expected to provide further hints on the potential timing of the US central bank's next interest rate cut.
Meanwhile, major technology players, which have been at the forefront of the AI-driven rally, saw early declines. Shares in industry leaders like Nvidia and Palantir Technologies dipped, reflecting the broader caution around tech and AI valuations as the year draws to a close.
