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US stocks end down as tech shares drop ahead of New Year

Summary

  • and Nasdaq fell as major tech and AI stocks declined
  • and Palantir weighed on the technology sector
  • rose nearly 1% alongside higher
  • Major indexes remain on track for strong monthly and yearly gains

NEW YORK, Dec 29 (Reuters) – ‘s main indexes ended lower on Monday, kicking off the final week of the year on a softer note, as heavyweight retreated from last week’s gains that had pushed the S&P 500 to record highs.

The information technology sector weighed on the S&P 500, as most tech and AI-linked stocks declined. Nvidia slipped 1.2% and Palantir Technologies dropped 2.4%.

“This is (not) the beginning of the end of the tech dominance, it’ll turn out to be a buying opportunity,” said Hank Smith, director and head of investment strategy at Haverford Trust.

“A big reason for that is the top tech names, excluding Tesla, do not have challenging valuations given their growth rate, the moat around their business and their financial strength, which is unparalleled.”

The S&P 500 lost 24.20 points, or 0.35%, to 6,905.74 and the lost 118.75 points, or 0.50%, to 23,474.35.

The Industrial Average fell 249.04 points, or 0.51%, to 48,461.93.

Tesla fell 3.3% after hitting a record high last week, weighing on the consumer discretionary sector.

Materials slipped, with precious-metal miners sliding as silver dropped sharply after topping $80 per ounce for the first time, while gold also fell after back-to-back record highs last week.

Conversely, energy stocks gained almost 1%, tracking a 2% rise in oil prices.

Bank stocks also retreated after a strong rally this year. Citigroup, among major gainers this year due to progress on resolving some regulatory problems, dropped 1.9% on Monday. The stock has gained nearly 68% since the start of the year.

Stocks pulled back after the S&P 500 was within 1% of the 7,000-point mark. The blue-chip Dow hit a record closing high last week.

Some investors were hoping for a “Santa Claus rally”, a seasonal phenomenon where the S&P 500 typically posts gains in the last five trading days of the year and the first two in January, according to Stock Trader’s Almanac.

All three indexes were headed for firm monthly gains, with the Dow and S&P 500 on pace for their eighth consecutive month in the green.

The bull market, which began in October 2022, stayed intact despite concerns over high valuations of technology companies and . With traders still optimistic about AI, interest-rate cuts and a resilient economy, all three main indexes are set for their third consecutive yearly gain.

Most strategists also expected gains in 2026.

With expectations for continued global economic expansion and further easing by the Federal Reserve, it would be unusual to see a significant equity setback or bear market without a recession, said Peter Oppenheimer, chief global equities strategist at Goldman Sachs, in a recent note.

On the macro front, minutes from the Fed’s previous meeting and a weekly reading of jobless claims will be on the radar in an otherwise data-light week.

The S&P 500 has added about 17% so far this year, as the frenzy to capitalize on AI helped the U.S. benchmark overtake Europe’s STOXX 600, despite investors diversifying away from U.S. stocks earlier in the year.

DigitalBridge surged 9.6%, with Japan’s SoftBank Group set to acquire the digital infrastructure investor in a deal valued at $4 billion.

Declining issues outnumbered advancers by a 1.63-to-1 ratio on the NYSE. There were 154 new highs and 83 new lows on the NYSE.

On the Nasdaq, 1,386 stocks rose and 3,305 fell as declining issues outnumbered advancers by a 2.38-to-1 ratio.

The S&P 500 posted 10 new 52-week highs and 2 new lows while the Nasdaq Composite recorded 37 new highs and 249 new lows.

Volume on U.S. exchanges was 13.08 billion shares, compared with the 16.2 billion average for the full session over the last 20 trading days.

(Reporting by Purvi Agarwal and Shashwat Chauhan in Bengaluru and Saeed Azhar in New York; Editing by Krishna Chandra Eluri, Daniel Wallis and David Gregorio)

 

Buc-ee’s delays second Virginia location by four years

Buc-ee’s has pushed the expected opening of its County to December 2031.

The Texas-based mega travel center chain previously expected to open the location, which would be its second in Virginia, at Exit 211 off in 2027. Buc-ee’s Media Coordinator Crissy Gonzales on Monday confirmed the new opening date but did not directly answer a question asking for the reason behind the postponement.

News of the delay initially followed a Dec. 15 meeting of the Planning Commission, where New Kent County Administrator Rodney Hathaway cited the Virginia Department of Transportation’s Exit 211 Interchange Improvement Project as a factor in the timing of the Buc-ee’s opening.

“I believe the completion date for the Exit 211 project is September 2029,” Hathaway told the planning commission. “We know that a big driver of this is Buc-ee’s. … They’re planning their opening date to align with ‘s completion date.”

The VDOT project will create a diverging diamond interchange at Exit 211. According to a VDOT webpage, the project is in the design stage, with an estimated start date of spring 2027 and estimated completion in fall 2029. Work on a bridge that’s part of the project is underway, Hathaway said.

Also underway on the interstate segment is the roughly $716 million I-64 Gap Widening Project, which will widen 29 miles of roadway in New Kent and James City counties from two lanes to three lanes in each direction. The overall project, divided into three independent sections of I-64, has an expected completion date of summer 2029.

In June 2023, Buc-ee’s paid $6.5 million for 27.68 acres at the New Kent County site. Although Buc-ee’s initially planned to open the New Kent location by 2025, according to a 2023 S.L. Nusbaum Realty news release, its expected opening was later pushed to 2027 to coordinate with road construction projects.

As of 2023, plans for the property included about 74,000 square feet of  space, 120 fueling positions, multiple electric vehicle chargers and parking for more than 650 vehicles, including bus and RV parking.

Buc-ee’s opened its first Virginia location at Exit 240 off Interstate 81 in Mount Crawford in June. The company is also seeking to build a travel center in Stafford County, but in October, the county’s planning commission voted to defer zoning-related requests from Buc-ee’s until Jan. 14, 2026.

Founded in 1982, Buc-ee’s has 54 locations in the Lone Star State, Alabama, Colorado, Florida, Georgia, Kentucky, Missouri, Mississippi, South Carolina, Tennessee and Virginia. The travel centers are beloved by many for clean restrooms and delicacies including brisket and Beaver Nuggets.

Oil jumps 2% as investors weigh Ukraine talks against supply outlook

Dec 29 (Reuters) – rose by more than $1 on Monday as investors weighed talks between the U.S. and Ukrainian presidents on a possible deal to end the war in Ukraine against potential oil supply disruption in the Middle East.

futures rose $1.33, or 2.2%, to $61.97 a barrel by 1416 GMT while U.S. West Texas Intermediate crude was up $1.31, or 2.3%, at $58.05.

Both benchmarks fell by more than 2% on Friday.

“ moved higher as geopolitical developments lent support to crude prices, with Brent edging up on renewed and shifting ,” said IG analyst Axel Rudolph, adding that thin liquidity could amplify volatility into the start of next year.

Ukrainian President Volodymyr Zelenskiy said on Monday that significant progress had been made in talks with U.S. counterpart Donald Trump and agreed that U.S. and Ukrainian teams would meet next week to finalise issues aimed at ending Russia’s war in Ukraine.

Zelenskiy added that a meeting with Russia would be possible only after Trump and European leaders agree on a Ukraine-proposed framework for peace.

“The Middle East has also been unsettled recently, with Saudi air strikes in Yemen … this may be what’s driving market concerns about potential supply disruptions,” said Yang An, a China-based analyst at Haitong Futures.

Saudi Arabia, the world’s biggest oil exporter, is expected to lower the February price for its flagship Arab Light crude for Asian buyers for a third month, mirroring declines in the spot market owing to abundant supplies, six Asia-based refining sources said in a Reuters survey.

Investors are also awaiting U.S. stockpiles data for the week to December 19, with an extended Reuters poll showing that U.S. were expected to have fallen last week, while distillate and gasoline inventories are likely to have risen. [EIA/S]

The report was delayed from its usual Wednesday release because of the Christmas holiday.

Strong Chinese waterborne crude imports were also keeping markets tighter elsewhere, said UBS analyst Giovanni Staunovo.

He added that $60 a barrel was the soft floor for Brent, with prices expected to recover slightly in 2026 because non-OPEC+ supply growth is likely to stall in the middle of 2026.

(Reporting by Seher Dareen in London and Sam Li and Ryan Woo in Beijing; Editing by David Goodman and Joe Bavier)

 

Lululemon founder Chip Wilson launches proxy fight for board shakeup

Summary

  • Founder nominated three independent directors to ‘s board
  • Move follows CEO Calvin McDonald’s exit and lack of a clear succession plan
  • Lululemon shares are down nearly 50% this year amid rising competition
  • Activist investor Elliott Management holds a $1 billion stake in the company

Dec 29 (Reuters) – Lululemon Athletica’s founder Chip Wilson said on Monday he had launched a by nominating three independent directors to the company’s board, days after the apparel maker announced the exit of CEO Calvin McDonald.

Lululemon shares have shed nearly half their value this year as the company struggles to find its footing with younger and affluent shoppers, while battling stiff competition from fast-growing newer rivals such as Alo Yoga and Vuori, as well as pressure from activist investor Elliott Management.

Wilson has nominated three director candidates to Lululemon’s board, including former On Running co-CEO Marc Maurer, former ESPN Chief Marketing Officer Laura Gentile and former Activision CEO Eric Hirshberg.

“The recent CEO change announcement was the third total failure of board oversight, with no clear succession plan in place. Shareholders have no faith that this board can select and support the next CEO without input from a board with stronger product experience,” Wilson said in a statement.

Lululemon did not immediately respond to a Reuters request for comment.

Following McDonald’s exit, Vancouver-based Lululemon named CFO Meghan Frank and Chief Commercial Officer André Maestrini as co-interim CEOs, and said that it was in the process of finding a full-time replacement.

Reuters had reported that Elliott Management, which disclosed a $1 billion stake in the company earlier this month, had been working closely for months with former Ralph Lauren executive Jane Nielsen for a potential CEO role.

Wilson had spoken to Nielsen, but believed Lululemon shareholders would not trust any CEO who is picked by the current board, and thus wanted to change the board first, the Journal reported earlier in the day.

“Adding three new board members seems like something that Lululemon would be willing to do. It might keep Wilson from constantly attacking the board, at least. The nominees appear to be fine, although only one of the three (Maurer) has direct experience in Lululemon’s industry,” Morningstar analyst David Swartz said.

Wilson likely did not ask for a board seat for himself as he owns a significant stake in Lululemon’s competitor Amer Sports, Swartz added.

WILSON’S HISTORY WITH LULULEMON

Wilson is one of the biggest independent shareholders of Lululemon, with a 4.27% stake as of December 2025, according to LSEG data.

The yogawear maker’s founder had previously called for an urgent search for a CEO to replace McDonald, led by new, independent directors with a deep knowledge of the company to restore a “product-first” mindset at the company.

This is not the first time Wilson has pushed for changes at Lululemon’s board.

After founding the apparel company in 1998, Wilson withdrew from daily operations in 2012 and resigned as chairman a year later following a recall of see-through yoga pants that led to the departures of top executives amid a public-relations storm.

He also quit the director post in 2015 after clashing with the board over strategy. However, a proxy fight was averted after Wilson agreed to sell about half of his 27% stake to private-equity firm Advent International for $845 million in return for two additional director positions.

(Reporting by Juveria Tabassum, Sanskriti Shekhar and Anuja Bharat Mistry in Bengaluru; Editing by Shailesh Kuber and Anil D’Silva)

 

Nvidia takes $5 billion stake in Intel under September agreement

Dec 29 (Reuters) – has purchased Intel shares worth $5 billion, the American semiconductor firm said in a filing on Monday, carrying out a transaction announced in September.

The leading AI chip designer said in September it would pay $23.28 per share for Intel common stock, in a deal that is seen as a major financial lifeline for the chipmaker after years of missteps and capital intensive production capacity expansions drained its finances.

The world’s most valuable firm has bought over 214.7 million Intel shares at the price set out in the September agreement, in a private placement, according to Monday’s filing.

U.S. antitrust agencies had cleared Nvidia’s investment in Intel, according to a notice posted by the U.S. Federal Trade Commission earlier in December.

Nvidia shares were down 1.3% in premarket trading while Intel stock was little changed.

(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Anil D’Silva)

 

US pending home sales hit nearly 3-year high

Summary

  • rose 3.3% in November, beating forecasts
  • Sales contracts are up 2.6% from a year earlier
  • Lower and wage growth boosted affordability
  • All U.S. regions posted gains in pending home sales

Dec 29 (Reuters) – Contracts to purchase previously owned U.S. homes unexpectedly shot to the highest in nearly three years in November, as improving affordability conditions drew in buyers, the said on Monday.

Pending home sales rose 3.3% last month after an upwardly revised 2.4% gain in October, the NAR said. Economists polled by Reuters had forecast contracts, which become sales after a month or two, rising 1.0%.

Pending home sales rose 2.6% from a year earlier.

The index tracking sales rose to its highest level since February 2023.

“Homebuyer momentum is building. The data shows the strongest performance of the year after accounting for seasonal factors, and the best performance in nearly three years, dating back to February 2023,” said Lawrence Yun, the NAR’s chief economist.

“Improving housing affordability – driven by lower mortgage rates and wage growth rising faster than home prices – is helping buyers test the market,” Yun said. “More inventory choices compared to last year are also attracting more buyers to the market.”

Contracts rose in the Northeast, Midwest, the South and the West.

Mortgage rates have edged lower since the Federal Reserve resumed interest rate cuts in September, though it is unclear if rates will fall much further in the months ahead with the central bank signaling a likely pause in the reductions.

Data from mortgage finance agency Freddie Mac showed the latest 30-year, fixed-rate mortgage rate was 6.18%, near the lowest since the fall of 2024.

 

(Reporting by Dan Burns; Editing by Andrea Ricci)

 

Wall St hovers near record highs in post-Christmas session

Dec 26 (Reuters) – U.S. stock indexes hovered near all-time highs in thin post-Christmas trading on Friday, supported by signs of a resilient economy and renewed investor interest in AI-related companies.

The benchmark hit an intraday record high before pulling back slightly, while the blue-chip Industrial Average was about 0.5% from its December 12 peak.

U.S. stocks rebounded after last week’s selloff, when AI and faced pressure from concerns over lofty valuations and high capital expenditures denting profits.

However, resilient economic data, the prospect of further policy easing under a new Federal Reserve chair next year and fresh appetite for AI stocks fueled a market recovery, putting the S&P 500, Dow and Nasdaq on track for a third straight year of gains.

“2026 is likely going to be a ‘prove-it’ year for markets. Companies must deliver tangible productivity and margin gains from AI and other investments,” said Brian Jacobsen, chief economist at Annex Wealth Management.

Analysts expect profit for S&P 500 companies to increase 15.5% in 2026, an improvement from a 13.2% growth forecast for 2025, according to data compiled by LSEG.

The S&P 500 has risen more than 17% so far in 2025, driven by megacap tech companies for much of the year, but the rally has broadened of late, with investors piling into cyclical sectors such as financials and materials.

Traders are waiting to see if the “Santa Claus rally” — a seasonal phenomenon where the S&P 500 posts gains in the last five trading days of the year and the first two in January, according to Stock Trader’s Almanac — can happen this time. That period began on Wednesday and will run through January 5.

At 11:42 a.m. ET, the Dow Jones Industrial Average fell 65.06 points, or 0.13%, to 48,666.10. The S&P 500 lost 0.48 points, or 0.01%, to 6,931.57, while the gained 12.11 points, or 0.05%, to 23,625.41.

climbed 1.4% after the AI chip designer agreed to license chip technology from startup and hire its CEO.

Target rose 1.7% after the Financial Times reported the retailer is facing pressure from hedge fund Toms Capital Investment Management, which has made a significant investment in the company.

U.S.-listed shares of precious metal miners such as First Majestic, Coeur Mining and Endeavour Silver rose between 0.3% and 2.2%, as silver and gold prices smashed fresh records again. [GOL/]

Declining issues outnumbered advancers by a 1.37-to-1 ratio on the NYSE and by 1.71-to-1 on the Nasdaq.

The S&P 500 posted 17 new 52-week highs and no new lows, while the Nasdaq Composite recorded 33 new highs and 126 new lows.

(Reporting by Sruthi Shankar and Shashwat Chauhan in Bengaluru; Editing by Shilpi Majumdar)

 

Oil falls $1 on looming supply glut, hopes for Ukraine peace deal 

Summary

  • fell to $61.21 while WTI dropped to $57.30 a barrel
  • Oil is on track for its steepest annual decline since 2020
  • IEA forecasts global supply exceeding demand by nearly 3.9 million BPD
  • raise prospects of lower geopolitical risk premiums

HOUSTON, Dec 26 (Reuters) – fell by more than $1 a barrel on Friday as investors weighed a looming global supply glut and a reduced war risk premium, amid hopes of a Ukraine peace deal ahead of talks this weekend between Ukrainian President Volodymyr Zelenskiy and U.S. President Donald Trump.

Brent crude futures fell $1.03 or 1.65% to $61.21 per barrel by 11:42 a.m. EDT (1642 GMT). U.S. West Texas Intermediate (WTI) crude fell $1.05 or 1.8% to $57.30.

While supply disruptions have helped oil prices rebound in recent sessions from their near five-year low on December 16, they are on track for their steepest annual decline since 2020. Brent and WTI are down 18% and 20% respectively on the year, as rising crude output caused concerns of an oil glut heading into next year.

“Geopolitical premiums have provided near-term price support, but have not materially shifted the underlying oversupply narrative,” Aegis Hedging analysts said in a note on Friday.

The next year will exceed demand by 3.84 million barrels per day, according to figures from the Paris-based IEA’s December oil market report.

Eyes on Russia-Ukraine peace process

Investors are watching for developments in the Russia-Ukraine peace process and the possible impact on future oil prices, as a peace agreement could lead to the removal of international sanctions against Russia’s oil sector.

Zelenskiy will discuss territorial issues, the main stumbling block in talks to end the war, with Trump in Florida on Sunday, as a 20-point peace framework and a security guarantees deal near completion.

Announcing the meeting, Zelenskiy said that “a lot can be decided before the New Year.”

A foreign policy aide to Russian President Vladimir Putin spoke to members of the U.S. administration after Moscow received U.S. proposals about a possible Ukrainian peace deal, the Kremlin said on Friday.

“The negatives remain of elevated global oil storage, and slight progress on Ukraine-Russia peace talks,” said Dennis Kissler, senior vice president of trading at BOK Financial.

Elsewhere, the White House ordered its military forces to focus on a “quarantine” of Venezuelan oil for at least the next two months, indicating Washington is currently more interested in using economic rather than military means to pressure Caracas.

“The global impact to crude prices looks minimal at this time,” Kissler said of U.S. actions to intercept sanctioned oil tankers leaving and entering Venezuela.

The U.S. on Thursday also carried out a strike against Islamic State militants in northwest Nigeria’s Sokoto state in coordination with the Nigerian government, Trump said.

“Nigerian strikes touted by Trump are targeting Islamic State and not specifically impacting any crude pipelines or oil terminals. Thus traders are staying on the sidelines in this thin-liquidity market on Boxing Day,” said June Goh, senior oil market analyst at Sparta Commodities.

Nigeria’s oilfields and export infrastructure are mainly located in the south of the country.

(Reporting by Georgina McCartney in Houston, Robert Harvey in London and Sudarshan Varadhan in Singapore; Editing by Muralikumar Anantharaman, Joe Bavier and Edmund Klamann)

 

Target faces activist investor pressure as sales slide

Dec 26 (Reuters) – Target is facing pressure from hedge fund Toms Capital Investment Management, which has made a significant investment in the retailer, the Financial Times reported on Friday, citing people familiar with the matter.

Shares of the company were up 1.5% after the news. The stock has lost about 26% of its value this year.

The Minneapolis-based retailer has posted three straight quarters of falling comparable sales and is betting on incoming chief and longtime company executive Michael Fiddelke to revive growth, as the business faces pressure from strained household budgets and tariff uncertainties.

Meanwhile, rival Walmart has gained market share with its focus on cheap groceries and household essentials, coupled with fast doorstep delivery.

“As part of our robust shareholder engagement program, we maintain a regular dialogue with the investment community. Target’s top priority is getting back to growth…,” Target said in a statement to Reuters.

Target has plans to spend an additional $1 billion in 2026 on new store openings and remodels. It has also cut 1,800 corporate roles as part of a broader restructuring.

Earlier this year, Toms Capital had built a stake in Tylenol maker Kenvue before its sale to Kimberly-Clark last month for $40 billion.

Toms Capital did not immediately respond to a Reuters request for comment.

(Reporting by Savyata Mishra and Sanskriti Shekhar in Bengaluru; Editing by Vijay Kishore)

 

Nvidia, joining Big Tech deal spree, to license Groq technology, hire executives

Summary

  • signed a non-exclusive license for ‘s AI inference chip technology
  • Groq founder and CEO Jonathan Ross will join Nvidia along with key engineers
  • The deal stops short of an acquisition amid heightened
  • Nvidia faces growing competition in AI inference from AMD and startups

Dec 24 (Reuters) – Nvidia has agreed to license chip technology from startup Groq and hire away its CEO, a veteran of Alphabet’s Google, Groq said in a blog post on Wednesday.

The deal follows a familiar pattern in recent years where the world’s biggest technology firms pay large sums in deals with promising startups to take their technology and talent but stop short of formally acquiring the target.

Groq specializes in what is known as inference, where models that have already been trained respond to requests from users. While Nvidia dominates the market for training AI models, it faces much more competition in inference, where traditional rivals such as Advanced Micro Devices have aimed to challenge it as well as startups such as Groq and Cerebras Systems.

Nvidia has agreed to a “non-exclusive” license to Groq’s technology, Groq said. It said its founder Jonathan Ross, who helped Google start its AI chip program, as well as Groq President Sunny Madra and other members of its engineering team, will join Nvidia.

A person close to Nvidia confirmed the licensing agreement.

Groq did not disclose financial details of the deal. CNBC reported that Nvidia had agreed to acquire Groq for $20 billion in cash, but neither Nvidia nor Groq commented on the report. Groq said in its blog post that it will continue to operate as an independent company with Simon Edwards as CEO and that its cloud business will continue operating.

In similar recent deals, Microsoft’s top AI executive came through a $650 million deal with a startup that was billed as a licensing fee, and Meta spent $15 billion to hire Scale AI’s CEO without acquiring the entire firm. Amazon hired away founders from Adept AI, and Nvidia did a similar deal this year. The deals have faced scrutiny by regulators, though none has yet been unwound.

“Antitrust would seem to be the primary risk here, though structuring the deal as a non-exclusive license may keep the fiction of competition alive (even as Groq’s leadership and, we would presume, technical talent move over to Nvidia),” Bernstein analyst Stacy Rasgon wrote in a note to clients on Wednesday after Groq’s announcement. And Nvidia CEO Jensen Huang’s “relationship with the Trump administration appears among the strongest of the key US tech companies.”

Groq more than doubled its valuation to $6.9 billion from $2.8 billion in August last year, following a $750 million funding round in September.

Groq is one of a number of upstarts that do not use external high-bandwidth memory chips, freeing them from the memory crunch affecting the global chip industry. The approach, which uses a form of on-chip memory called SRAM, helps speed up interactions with chatbots and other AI models but also limits the size of the model that can be served.

Groq’s primary rival in the approach is Cerebras Systems, which Reuters this month reported plans to go public as soon as next year. Groq and Cerebras have signed large deals in the Middle East.

Nvidia’s Huang spent much of his biggest keynote speech of 2025 arguing that Nvidia would be able to maintain its lead as AI markets shift from training to inference.

(Reporting by Stephen Nellis in San Francisco; Additional reporting by Harshita Mary Varghese in Bengaluru; Editing by Shailesh Kuber, Matthew Lewis and William Mallard)