US Stock Indices Dip on 2025’s Final Trading Day

On the final trading day of 2025, major US stock indices began the session modestly lower. Trading activity was expected to be limited due to the holiday, reducing the likelihood of significant market movements. This cautious atmosphere followed the release of stable labor market indicators.

Labor Market Stability Highlights

Recent unemployment data revealed encouraging trends. New jobless claims dropped to a monthly low, indicating a resilient job market despite seasonal variations. Continuing claims also fell in line with expectations, demonstrating ongoing labor stability. This backdrop helped to ease concerns about potential economic downturns linked to recent Federal Reserve rate cuts.

Federal Reserve’s Stance on Interest Rates

Minutes from the December Federal Open Market Committee (FOMC) meeting were released, showcasing differing opinions among members regarding future interest rate decisions. The committee voted to cut rates by 25 basis points, adjusting the target range to 3.5–3.75%. This split decision indicated the highest level of dissent within the board since 2019.

• Some FOMC members advocate for additional cuts if inflation decreases to the targeted 2%.
• Conversely, others prefer maintaining current rates longer, citing concerns over inflation’s sustainability and labor market health.

In the third quarter, the GDP exhibited robust growth of 4.3%, showing strong economic momentum.

Market Outlook Amid Changes

The upcoming rotation of regional bank presidents, including Beth Hammack and Neel Kashkari, is expected to impact FOMC dynamics, particularly as many of these officials oppose further monetary easing. Moreover, the Fed has resumed buying short-term Treasury bills to maintain reserve levels, indicating a careful approach amidst economic uncertainties.

Technical Analysis of Stock Performance

S&P 500 futures showed signs of a pullback after earlier gains, raising questions about market direction. The price action suggested a potential correction, with short-term moving averages indicating bearish momentum.

• EMA 25 remains below EMA 50 and EMA 100.
• The key resistance level at EMA 100 has not been broken yet.

Traders are closely watching whether overcoming this resistance will prompt a rally or if the index will remain within its current range.

Corporate Highlights in Biotech Sector

In corporate news, Vanda Pharmaceuticals’ stock surged by 30% due to FDA approval of their new drug, NEREUS, set for launch in the US soon. This approval opens doors in the kinetosis treatment market.

Additionally, Axsome Therapeutics saw a 16% rise following expedited FDA review for expanding AXS-05’s application for Alzheimer’s agitation. A decision is anticipated by April 30, 2026.

However, Cybin Inc. reported a 5% drop in shares after announcing a $100 million stock offering to bolster working capital.

Nike and Trump Media Developments

Nike’s CEO, Elliott Hill, purchased over $1 million in company stock, increasing his holdings. This move is perceived as a confidence boost for the company’s prospects. Meanwhile, Trump Media & Technology Group’s shares grew by 4% as they introduced a digital token for shareholders, enhancing engagement with products like Truth Social.

Overall, while the last trading day of 2025 featured cautious sentiment in US stock indices, underlying economic indicators showed stability and potential for future growth.