Wall Street Braces for Year-End Market Momentum Amid AI Frenzy

Wall Street's main indexes faced a subdued opening as tech stocks declined. Despite a strong December performance, investor focus remains on AI prospects and interest rate cuts. Miners saw stabilization, while T1 Energy rose after a major sale. Light trading is expected due to the holiday season.

On Tuesday, Wall Street poised itself for a cautious opening following its steepest single-day decline in nearly two weeks, driven by a sell-off in technology stocks.

The final trading week of 2025 began with a downturn for major tech and AI-linked stocks, pulling back from recent highs that had propelled the S&P 500 towards a historic milestone. Investors remain hopeful for a 'Santa Claus rally,' typically resulting in market gains during year-end trading.

Amid geopolitical tensions and mixed economic signals, the market awaits the Federal Reserve's recent meeting minutes. While the central bank maintained a cautious stance on rate cuts, optimism persists for further reductions in 2026. Miners steadied after initial losses, and T1 Energy saw gains following a significant transaction. Light trading is anticipated due to the forthcoming holiday.

(With inputs from agencies.)