Wall St wobbles as tech rally wanes in final week of 2025

Wall Street's main indexes kicked off the final week of the year on a softer note on Monday, as heavyweight technology stocks retreated from last week's gains that had pushed the S&P 500 to record highs.

The information technology sector  weighed on the S&P 500, as most tech and AI-linked stocks declined, with Nvidia  down 1.8%, Broadcom  off 1% and Palantir Technologies  shedding 1.4%.

"This is (not) the beginning of the end of the tech dominance, it'll turn out to be a buying opportunity," said Hank Smith, director and head of investment strategy at Haverford Trust.

"A big reason for that is the top tech names, excluding Tesla, do not have challenging valuations given their growth rate, the moat around their business and their financial strength, which is unparalleled."

Tesla  also fell 1.8% after hitting a record high last week and weighed on the consumer discretionary sector .

Materials  slipped 1%, with precious metal miners sliding as silver dropped sharply after topping $80 per ounce for the first time, while gold also fell after back-to-back record highs last week.