The S&P 500 opened nearly unchanged on Wednesday, trading close to flat as Wall Street wrapped up 2025 with muted activity. Nike gained after CEO Elliott Hill reported recently buying about $1 million worth of shares. Tesla traded in the green after Michael Burry said he was not short the stock, despite having called it “ridiculously overvalued” earlier this month.

S&P 500 Ends 2025 Quietly as Sectors Slip

At 9:38 a.m. in New York, the S&P 500, NASDAQ 100, and the Magnificent Seven index traded near flat, while all S&P 500 sectors opened lower. Communications, materials, and real estate led declines at 0.3% or less. Traders kept risk tight after a low-volume session tied to early holiday closures across global markets.

The benchmark stayed on track to finish a third straight year of double-digit gains. However, momentum softened late in December. The S&P 500 dipped close to 0.1% early Wednesday. This move trimmed its 2025 advance to roughly 17%. The NASDAQ 100 slipped around 0.2%. Bespoke Investment Group flagged thin holiday liquidity. It also noted the dollar sat near its worst annual decline since 2017. This decline added another cross-asset signal heading into 2026.

AI Trade Shifts from Mega-Cap Tech to “Pick-and-Shovel” Winners

Traders pushed NVIDIA up about 0.5% after talk spread that the company approached Taiwan Semiconductor Manufacturing Co. The goal involved ramping H200 AI chip production. 

The move kept attention on the AI supply chain. It also showed investors spreading exposure beyond the largest technology names. Data storage companies led the S&P 500 performance in 2025. Sandisk soared, and Western Digital ranked near the top. Demand for data center capacity stayed firm.

Portfolio managers tracked changing leadership inside AI-linked equities. NVIDIA still gained around 40% in 2025. However, its percentage advance lagged several infrastructure beneficiaries. Jake Seltz at Allspring Global Investments said investors “broadened our horizons beyond tech” as benchmarks stayed concentrated. 

In premarket moves, several Magnificent Seven stocks edged down. Alphabet stood out as the strongest year-to-date performer in the group.

Biotech Swings, Metals Volatility, and Rate-Cut Bets Shape 2026

Single-stock moves reflected event-driven trading. Vanda Pharmaceuticals surged after the US FDA approved its motion-sickness treatment tradipitant. Axsome Therapeutics jumped after its Alzheimer’s drug received priority review. Corcept Therapeutics plunged after regulators rejected its therapy for a form of high blood pressure. The decision widened the day’s biotech dispersion.

Silver slid as CME Group raised margins on precious-metal futures for the second time in a week. Volatile trading drove the change, and it takes effect after Wednesday’s close. Newmont slipped as mining shares tracked the higher funding terms. Markets also watched Berkshire Hathaway. The stock traded little changed on Warren Buffett’s last day at the firm. In November, Buffett said he was “going quiet,” ending a long public chapter.

Macro data offered limited direction, although jobless claims surprised. Initial claims fell 16,000 to 199,000 in the week ended Dec. 27. This reading beat the 218,000 median estimate. Bloomberg economist Eliza Winger said seasonal adjustments likely distorted the number. However, she expected weak hiring to keep the Federal Reserve open to rate cuts in 2026. 

Treasuries held steady, with the 10-year yield near 4.15%. The dollar fluctuated after a run of gains, while Bitcoin traded near $88,500 after settling into a broad post-crash range. Oil stayed under pressure into year-end and into 2026. Brent held near $62 a barrel as traders weighed higher supplies and near-term OPEC+ focus. 

Roberto Scholtes at Singular Bank said managers realigned to the benchmark. He added that his base case kept the bull run intact, though he expects more volatility and mid-single-digit returns going forward.

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