Stocks

US Stock Market Today: S&P 500 Trades Flat in Thin Year-End Session as Investors Await Fed Minutes

Tesla Slips on Delivery Estimates as Meta Jumps on Manus Deal, with Fed Minutes in Focus

Written By : Kelvin Munene
Reviewed By : Manisha Sharma

US stocks steady in thin year-end trading as investors await Federal Reserve minutes and monitor corporate headlines for direction. The S&P 500 held near flat by mid-morning on Tuesday, while the NASDAQ 100 slipped about 0.1% and the Dow Jones Industrial Average eased about 0.2%. In Europe, the Stoxx Europe 600 rose about 0.5%, and the MSCI World Index stayed little changed.

Market activity stayed light after Monday’s turnover lagged the 20-day average by nearly 40%. Tech megacaps traded mixed. Energy and communication services led gains inside the S&P 500, while consumer discretionary, materials, and financials lagged. Traders expected low turnover into the close.

Stocks Hold Range as Year-End Volume Stays Thin

Traders kept risk exposure steady as the calendar neared the final sessions for many global exchanges. Germany, Japan, and South Korea counted Tuesday as the last trading day of the year for their equity markets. European stocks advanced as higher metal prices supported miners.

In the US, investors tracked housing data that pointed to slightly firmer home-price growth in October. The Federal Housing Finance Agency series and the S&P CoreLogic Case-Shiller index both came in above estimates. Additionally, markets turned to the Fed minutes for clues on the 2026 policy path.

Global equities still aimed for a third straight annual gain. However, several major indices lost momentum into year-end as catalysts faded.

AI Trade Shifts to “Pick-and-Shovel” Data Storage Stocks

Investors continued to broaden the AI theme beyond headline megacaps and into suppliers that support data growth. Data storage companies led the S&P 500 performance during 2025. Sandisk ranked as the index’s top performer after a surge of nearly 580% from year-end 2024 levels, and it traded little changed on Tuesday.

Western Digital also featured among the top gainers as investors priced stronger demand for capacity tied to AI workloads. Moreover, the shift highlighted how the market rewarded infrastructure that supports training and inference. Consequently, traders watched storage, networking, and computing names for the next leg of the AI trade.

Treasury Yields Tick Higher as Traders Await Fed Minutes

Treasuries fell across the curve, and yields rose as traders positioned for the minutes release. The US 10-year yield climbed about two basis points to around 4.13%. Germany’s 10-year yield rose about three basis points to approximately 2.86%, while Britain’s 10-year yield held near 4.49%.

The Bloomberg Dollar Spot Index stayed near flat. However, the euro slipped nearly 0.1% to $1.1756, and sterling fell 0.4% to $1.3460. The yen weakened close to 0.2% to 156.39 per dollar, while China’s onshore yuan strengthened past 7 per dollar for the first time since 2023.

Tesla, Meta, and Commodities Drive Late-Session Focus

Individual stocks moved on company-specific updates. Tesla fell about 0.8% after posting a compilation of analyst delivery estimates that showed a weaker average than Bloomberg’s survey. Meta rose about 1% after agreeing to buy Manus, a Singapore-based AI agent with Chinese roots, in a deal reported at above $2 billion.

Commodities rebounded after sharp prior moves. Spot gold rose about 0.9% to $4,373.39 an ounce, and WTI crude added about 0.5% to $58.37 a barrel. Silver rebounded after a steep Monday drop, while copper extended a multi-day rally.

In crypto markets, Bitcoin climbed about 1.3% to $88,352.57, and Ether rose about 1.5% to $2,976.6. Overall, markets remained range-bound as thin liquidity and a lack of fresh catalysts kept investors cautious heading into the final trading sessions of the year.

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