Nasdaq, S&P 500 close lower as Santa rally falters

4:05pm: No more cheer

Wall Street ended the holiday-shortened week on a negative note, with the Dow Jones falling 0.8% at 42,971 points, while the S&P 500 lost 1.2% at 5,966 points and the Nasdaq Composite declined 1.5% at 19,722 points.

The selloff was primarily driven by weakness in large-cap technology stocks, with companies like Nvidia and Tesla leading the decline

Despite the day's losses, all three major US indexes remained in positive territory for the week.

2:56pm: Nvidia, Tesla under pressure 

Tech stocks struggled on Friday afternoon, with NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) shares plummeting 7.3% following reports of delayed orders from major cloud computing clients, dragging the Philadelphia Semiconductor Index down 3.2%.

Tesla Inc (NASDAQ:TSLA) stock also fell about 4.8% due to concerns about the company's ability to meet its ambitious fourth-quarter delivery targets amid increased competition in the EV market. 

This tech tumble has pushed the Nasdaq Composite 2.1% lower, while the S&P 500 dipped 1.5%.

1:17pm: US consumers spending big

As the holiday season unfolds, Americans are balancing record credit card debt with record-breaking consumer spending.

According to the National Retail Federation, holiday sales between November and December are expected to surpass previous years, reaching up to $989 billion, driven by job and wage gains and a resilient economic outlook.

However, a LendingTree survey reveals that 36% of consumers have taken on debt for holiday purchases, averaging $1,181, an increase from $1,028 last year.

With inflation continuing to strain finances, many shoppers are relying on credit cards to manage rising costs, highlighting the persistent tension between robust spending and financial stress.

12:12pm: Netflix breaks streaming records

Netflix Inc (NASDAQ:NFLX, ETR:NFC) made history with its NFL Christmas Gameday, attracting a record-breaking 65 million viewers in the United States, according to preliminary Nielsen data.

The debut streaming event saw an average of more than 24 million people tuning in for each game, cementing the Kansas City Chiefs-Steelers and Baltimore Ravens-Texans matchups as the most streamed NFL games in US history.

The Chiefs’ triumph over the Steelers averaged 24.1 million viewers, while the Ravens’ victory against the Texans drew slightly more, with an average of 24.3 million.

Viewership reached a peak of over 27 million during the halftime performance by Beyoncé.

11:00am: Slide continues

The major indices are sliding, with the Dow Jones down 0.8%, the S&P 500 down 1.2%, and the Nasdaq down 1.8%, led by declines in technology stocks.

After a strong year, with the Nasdaq surging over 30% and the S&P 500 rising more than 26%, the market is showing signs of fatigue.

Investors are reassessing their positions in tech giants like Nvidia, Tesla, and Apple, contributing to the pullback.

Meanwhile, the 10-year Treasury note remains near seven-month highs, hovering around 4.6%, adding to cautious sentiment.

Despite the morning’s negative trajectory, Wall Street remains hopeful for a potential "Santa Claus" rally to end the year on a positive note.

9:45am: US markets open lower

US stocks opened lower on Friday as the Santa Claus rally that kicked off earlier in the week lost steam.

The Dow Jones fell 157 points or 0.4% to 43,168, while the S&P 500 dropped 46 points or 0.8% to 5,992.

The tech-heavy Nasdaq Composite experienced the largest decline, shedding 255 points or 1.3% to 19,7656.

The market's downward movement comes as investors digest recent economic data and reassess expectations for Federal Reserve interest rate cuts in the coming year. Treasury yields remained elevated, with the 10-year note yield hovering around 4.6%, near seven-month highs24.

Despite Friday's pullback, major indexes are still on track for weekly gains, with the S&P 500 up over 26% for the year and the Nasdaq Composite surging more than 30%.

As the year draws to a close, market participants are focusing on two key themes for 2025: the Federal Reserve's interest rate trajectory and potential implications of the upcoming US presidential election.