Tech Weakness Leads Stocks Lower; Precious Metals Retreat Sharply

U.S. equities slipped Monday as a late-year rotation out of tech dragged major indexes into the red. Big Tech stocks, especially those tied to AI, gave back recent gains with no clear catalyst, while precious metals sold off sharply after speculative highs. The S&P 500 and Nasdaq both declined after a strong prior week, reflecting light volume and some positioning ahead of year-end. Meanwhile, silver and gold tumbled from record highs, and oil climbed amid geopolitical tensions.

Key Headlines & Market Movers:

• Tech Pullback Caps Index Gains: Mega-cap tech names led declines, with Tesla falling over 3% and Nvidia down 1.2%, reversing last week’s strong rally. AI-linked names like Palantir and Oracle also weakened as concerns emerged about overinvestment in large language model infrastructure. With valuations stretched and profit visibility murky, investors appear cautious heading into 2026 despite a broadly positive longer-term tech outlook.

Silver and Gold Selloff After Margin Hike: Silver dropped more than 8% and gold fell over 4% after both metals hit record highs earlier in the day. The sharp move came as the CME raised margin requirements, triggering profit-taking in an already overbought market. While recent enthusiasm was driven by central bank buying, safe-haven flows, and comments from Elon Musk, analysts see this dip as a healthy correction rather than a fundamental shift in outlook.

• Oil Rebounds on Geopolitical Tensions: WTI crude rose 2% to nearly $58 per barrel as U.S.-led diplomatic efforts over Ukraine stalled and tensions with Venezuela added uncertainty. Despite Monday’s bounce, oil remains on track for a fifth straight monthly loss. Market focus now shifts to 2026 demand projections and OPEC+ output decisions.

SoftBank Buys DigitalBridge: SoftBank’s $4B acquisition of data-center investor DigitalBridge sparked a nearly 10% rally in DBRG shares, signaling ongoing appetite for AI-adjacent infrastructure assets. The deal reinforces long-term conviction in digital infrastructure despite short-term volatility in the broader tech sector.

S&P 500 Sector Performance

Looking Ahead

With 2025 wrapping up, markets are digesting gains and preparing for what could be a fourth straight positive year for equities. While sentiment remains constructive, especially around U.S. growth and AI-driven productivity, risks tied to tech overextension, global policy shifts, and commodity volatility may lead to a choppier start to 2026. Light trading volumes and year-end positioning could continue to drive near-term swings.

Disclaimer

Duncan Williams Asset Management is an SEC registered investment adviser. SEC registration does not constitute an endorsement of Duncan Williams Asset Management by the SEC nor does it indicate that Duncan Williams Asset Management has attained a particular level of skill or ability.

This material prepared by Duncan Williams Asset Management is for informational purposes only and is accurate as of the date it was prepared.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Past performance is not indicative of future results. Investing involves risks, including the risk of loss of principal. Before making any investment decision, investors should consult with their financial advisor, consider their individual financial circumstances, and carefully review all relevant information and risk factors. Duncan Williams Asset Management assumes no responsibility for errors or omissions, nor does it accept liability for any loss arising from reliance on this information.

Advisory services are only offered to clients or prospective clients where Duncan Williams Asset Management and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Duncan Williams Asset Management unless a client service agreement is in place.

This material is not intended to serve as personalized tax, legal and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Duncan Williams Asset Management is not a legal or accounting firm. Please consult with your legal or tax professional regarding your specific tax situation when determining if any of the mentioned strategies are right for you.

‍