Any day that all of the Magnificent 7 are in the red tends to be a down day. This morning, the Magnificent 7 is down 1%, led by and . We’re also seeing related AI names lower as well, such as , down 3.8%. The relative damage can be seen where the market weight S&P is down 0.4% while the even-weighted S&P is down less than 0.1%.
It’s not all about tech; is down 1.2% and is down 1%, leading the Dow down 0.3%, and the is down 0.6%. The is up from Friday’s close of 13.6 to above 14.7. The Santa Claus rally is stumbling.
The profit taking is clearly seen where the 5 sectors which are down for the trailing month – utilities, real estate, healthcare, energy, and consumer staples – are the only ones in the green this morning.
The weakest sector is basic materials, down 1.1%, which is also the strongest in the trailing week, +1.6%. This is being driven by precious metals, where sizzling silver is down 8% to $70.9/oz after hitting $82.6 over the weekend, driven in part by an increase in margin requirements. Gold is down over $200 (4.6%). is down 14.5%. Some investors had anticipated profit taking here, but expected it to occur after year-end to postpone tax liabilities.
As the trading day rolls on, the major indexes are off the lows and the VIX has pulled back from peaking above 15 to 14.5.
In this closing short holiday week of ’25, it’s a bit surprising to see such clear profit taking so close to postponing gains into the new year. The S&P is still above 6,900, a new high remains a real possibility before the Wednesday close, and a 16.5% year is nothing to complain about.