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U.S. stocks closed lower on Tuesday as market participants assessed the Fed minutes, which showed a divided debate over the recent rate cut. The Nasdaq Composite, the S&P 500 and the Dow ended in negative territory for the third consecutive day. The stock market will be closed on Thursday, Jan. 1, for New Year's Day.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) lost 0.2%, or 94.87 points, to close at 48,367.06. Twenty-one components of the 30-stock index ended in negative territory, nine ended in positive territory.
The tech-heavy Nasdaq Composite declined 0.2%, to close at 23,419.08.
The S&P 500 fell 0.1%, or 9.50 points, to end at 6,896.24. Out of the 11 broad sectors of the broad-market index, six ended in negative territory, while five were in positive territory. The Information Technology Select Sector SPDR (XLK), the Financials Select Sector SPDR (XLF) and the Industrials Select Sector SPDR (XLI) fell 0.3%, 0.3% and 0.3%, respectively, while the Energy Select Sector SPDR (XLE) rose 0.8%.
The fear gauge, the CBOE Volatility Index (VIX), increased by 0.9% to 14.33. A total of 12.63 billion shares were traded on Tuesday, lower than the last 20-session average of 16.03 billion. The S&P 500 posted three new 52-week highs and one new low, and the Nasdaq Composite recorded 33 new highs and 205 new lows.
Fed Cuts Rates Amid Debate
The minutes of the Federal Reserve’s Dec. 9-10 meeting, released on Tuesday, revealed a deeply nuanced discussion among officials about the state of the U.S. economy. In the minutes, the officials demonstrated strong disagreement about this matter. Most participants backed lower interest rates, yet several participants suggested maintaining the present interest rates.
The discussion presented an unusual situation wherein officials backed both strong and weak monetary policy measures in the same meeting. The Fed announced that its future rate decisions would depend on upcoming labor market data and inflation reports, while it forecasted one more rate cut for 2026.
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Stock Market News for Dec 31, 2025
U.S. stocks closed lower on Tuesday as market participants assessed the Fed minutes, which showed a divided debate over the recent rate cut. The Nasdaq Composite, the S&P 500 and the Dow ended in negative territory for the third consecutive day. The stock market will be closed on Thursday, Jan. 1, for New Year's Day.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) lost 0.2%, or 94.87 points, to close at 48,367.06. Twenty-one components of the 30-stock index ended in negative territory, nine ended in positive territory.
The tech-heavy Nasdaq Composite declined 0.2%, to close at 23,419.08.
The S&P 500 fell 0.1%, or 9.50 points, to end at 6,896.24. Out of the 11 broad sectors of the broad-market index, six ended in negative territory, while five were in positive territory. The Information Technology Select Sector SPDR (XLK), the Financials Select Sector SPDR (XLF) and the Industrials Select Sector SPDR (XLI) fell 0.3%, 0.3% and 0.3%, respectively, while the Energy Select Sector SPDR (XLE) rose 0.8%.
The major loser of the S&P 500 Index was Ares Management Corporation (ARES - Free Report) after its shares fell 3.4%. Ares Management currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The fear gauge, the CBOE Volatility Index (VIX), increased by 0.9% to 14.33. A total of 12.63 billion shares were traded on Tuesday, lower than the last 20-session average of 16.03 billion. The S&P 500 posted three new 52-week highs and one new low, and the Nasdaq Composite recorded 33 new highs and 205 new lows.
Fed Cuts Rates Amid Debate
The minutes of the Federal Reserve’s Dec. 9-10 meeting, released on Tuesday, revealed a deeply nuanced discussion among officials about the state of the U.S. economy. In the minutes, the officials demonstrated strong disagreement about this matter. Most participants backed lower interest rates, yet several participants suggested maintaining the present interest rates.
The discussion presented an unusual situation wherein officials backed both strong and weak monetary policy measures in the same meeting. The Fed announced that its future rate decisions would depend on upcoming labor market data and inflation reports, while it forecasted one more rate cut for 2026.