Stocks Slip in Thin Holiday Trade as AI Boosts Meta; S&P 500 Eyes Longest Monthly Streak Since 2017

The market on December 30 saw muted action, typical for the final days of the year when trading volumes taper off. The S&P 500 lost ~0.14 % (9.50 points), closing at 6,896.24, while the Nasdaq Composite fell ~0.23 % to 23,419.08 and the Dow dropped ~0.20 % to 48,367.06. [1] These losses followed a six‐session winning streak for heavyweight tech names—Apple, Nvidia, etc.—which had helped push the S&P to fresh highs. [1] The positioning is consistent with a market entering a year‐end rebalancing phase rather than a sharp correction; the valuation gap between tech and more cyclically exposed sectors is becoming a focal point. [1]

The standout positive came from Meta, whose shares rose ~1.1 % on news that it’s acquiring Manus, an AI startup. [1] This reinforced investor enthusiasm for companies integrating AI tomorrows, especially within communication services. Conversely, financials dragged—Citigroup dropped ~0.8 % amid a confirmed sale of its Russian unit that will generate a ~$1.2 billion pre‐tax loss, largely tied to currency translation. [1] Goldman Sachs and American Express also contributed among financial laggards weighing on the Dow. [1]

Strategically, this environment suggests that investor focus is shifting from pure momentum in big‐cap tech toward more diversified exposure—both in sector and valuation. The risk of volatility increases during low‐volume periods, making company‐specific news or big policy signals more impactful. From a macro standpoint, the Fed’s upcoming meeting (Jan 27-28) is now being watched more intently, as markets price in a low probability of rate cuts near term, but expect broader accommodation in 2026. [1]