Tech Retreat: Wall Street Starts Final Week on a Softer Note

Wall Street's main indexes started the final week of the year lower as key tech stocks saw a decline. Despite a softened tech sector, expectations for future gains remain optimistic. Energy stocks were up, offsetting some losses, while the bull market shows resilience amid ongoing economic optimism.

Wall Street's crucial indexes began the final week of the year on a diminished note, with technology heavyweights pulling back from the previous week's high points that saw the S&P 500 setting new records. Notably, the information technology sector affected the S&P 500 due to downturns in tech and AI-related stocks, including Nvidia and Palantir Technologies, both taking hits of 1.5% and 1.6%, respectively.

The Dow Jones Industrial Average was down 187.31 points, or 0.38%, to 48,523.66, and the S&P 500 saw a reduction of 24.32 points, or 0.35%, to 6,905.68, while the Nasdaq Composite decreased by 130.47 points, or 0.55%, landing at 23,462.63. Despite a brief spike to a record high, Tesla's fall of nearly 2.4% weighed heavily on consumer discretionary stocks.

While materials dipped by 1%, notably due to a sharp drop in silver prices, energy stocks rose by 0.9% in alignment with a 2% increase in oil prices. The stock pullback followed the S&P 500's proximity to the 7,000-point mark and record highs for the blue-chip Dow. Investors eyed a potential 'Santa Claus rally,' expecting end-of-year gains despite high tech valuations and market volatility, bolstered by AI excitement and economic optimism.

(With inputs from agencies.)