Stock Market Today: Dow Sinks 333 Points as Mega Caps Slide
The main indexes sold off at the open and stayed lower through the close, putting the Santa Claus rally at risk.



A sell-off in mega-cap stocks sparked a broader slump across Wall Street on Friday, though the three main benchmarks managed to hold on for weekly wins. Today's price action puts the Santa Claus rally at risk, which has historically spelled trouble for January returns.
At the close, the Dow Jones Industrial Average was down 0.8% at 42,992, the S&P 500 was off 1.1% at 5,970, and the Nasdaq Composite had lost 1.5% to 19,722.
Nvidia (NVDA) was the worst Dow Jones stock today, sliding 2.0% to bring its month-to-date deficit to 0.8%. Still, the artificial intelligence (AI) bellwether has nearly tripled for the year to date and Morgan Stanley analyst Joseph Moore says it remains a top stock pick heading into the new year.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Moore admits that Nvidia is facing near-term concerns – some of which are overstated (slow Hopper builds) and some of which are anxiety-inducing at the moment (certain versions of Blackwell chips are not ready to ship) but irrelevant over the long term.
However, the analyst says that the acceleration in the supply of Blackwell chips will result in higher revenue – and more upside potential – for NVDA than its peers.
Tesla gives back more Trump gains
Nvidia was hardly the biggest loser among mega caps. That award went to Tesla (TSLA), which plunged 5.0%.
Nevertheless, shares of the electric vehicle (EV) maker remain 25% higher on the month and have surged 50% since Donald Trump's victory at the ballot box in early November.
CFRA Research analyst Garrett Nelson sees even more upside for Tesla in the new year and recently raised his price target on the consumer discretionary stock to $560 from $450, representing implied upside of 30% to current levels.
The discontinuation of the federal EV tax credit should benefit Tesla "by increasing its automotive regulatory credit revenue" thanks to state initiatives such as California's Zero-Emission Vehicle (ZEV) program. Specifically, Nelson believes automakers will need to buy credits received from these programs from Tesla in order to comply with regulations.
Buffett buys more VeriSign shares
Outside of the mega-cap space, VeriSign (VRSN) was a bright spot in Friday's washout, with the tech stock gaining 0.6%. This comes after regulatory filings revealed Warren Buffett's Berkshire Hathaway (BRK.B) bought nearly 378,000 shares of the website domain-name registry services company for roughly $74 million between December 17 and December 24.
VRSN first became a Berkshire Hathaway equity holding in the fourth quarter of 2012. At the end of Q3 2024, Berkshire owned 12.8 million shares, accounting for 0.9% of the portfolio and making it the 14th largest position.
According to MarketWatch's Phil van Doorn, it's possible Buffett is attracted to VeriSign's healthy margins, including an 88% gross margin in Q3. (Gross margin is the profit that's left over after subtracting the cost of goods sold from revenue and the higher, the better.)
Filings have also revealed that Berkshire increased its stakes in energy stock Occidental Petroleum (OXY) and audio streaming company Sirius XM Holdings (SIRI).
These purchases are particularly notable given how much selling Buffett & Co. have done this year – including drastically reducing the holding company's stake in Apple (AAPL).
The Santa Claus rally is at risk
The Santa Claus rally is "officially defined as the last five trading days of the year plus the first two trading days of the new year," says Adam Turnquist, chief technical strategist for LPL Financial. "Since 1950, the S&P 500 has generated average and median returns of 1.3% during this period, widely outpacing the market's average seven-day return of 0.3%."
Turnquist adds that when stocks deliver a positive Santa Claus rally return, the S&P 500 has averaged a January return of 1.4%. However, "when Santa doesn't show up and stocks are lower over this period, the S&P 500 has generated an average January return of -0.02%," he notes.
Since the start of this year's Santa Claus rally, the S&P 500 is down 0.02%.
Related content
- 11 Ways to Grow Your Wealth
- Is the Stock Market Open on New Year's?
- Is a Lost Decade Ahead for Stocks?
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Stock Market Today: Dow Rises 854 Points From Its Intraday Low
If there's one thing markets hate, it's uncertainty. But uncertainty is all they're getting these days.
By David Dittman Published
-
Are You a Retirement Millionaire Too Scared To Spend?
If you are too scared to spend money in retirement, you may be saddled with regret. Here are three ways to safely enjoy your sizable retirement nest egg.
By Donna Fuscaldo Published
-
Stock Market Today: Dow Rises 854 Points From Its Intraday Low
If there's one thing markets hate, it's uncertainty. But uncertainty is all they're getting these days.
By David Dittman Published
-
Seven Questions to Ask When Evaluating Personal Loan Options
Taking out a personal loan too hastily could lock you into unfavorable terms with an untrustworthy lender. Ask these questions before signing anything.
By David Kimball Published
-
How Much Does Being Rich Matter in Retirement?
After a certain point, having more money in retirement won't make you any happier, new research shows. Instead, physical health, a sense of purpose, and a minimal amount of non-mortgage debt are more relevant.
By Christy Bieber Published
-
The Three Biggest Fears Keeping Retirees Up at Night
Here are the steps you can take to put those fears to rest and retire with confidence so you can relax and enjoy the life you've planned.
By Pam Krueger Published
-
What Can a Donor-Advised Fund Do for You? (A Lot)
DAFs and private foundations go about helping charities (and those who donate) in different ways. Each comes with its own benefits and restrictions to navigate.
By Julia Chu Published
-
Estate Planning When You Have International Assets
Estate planning gets tricky when you have assets and/or beneficiaries outside the U.S. To avoid costly inheritance mistakes, it pays to understand the basics.
By Kelsey M. Simasko, Esq. Published
-
Microsoft Stock: Innovation Spurs Its 100,000% Return
Microsoft's ability to recognize the "next big thing" has allowed sales – and its share price – to grow exponentially over the years.
By Louis Navellier Published
-
Three Essential Estate Planning Steps to Protect Your Nest Egg
After dedicating years to building your wealth and securing your future, make sure your assets are protected and your loved ones are provided for in the future.
By Nicole Farbo, CFP® Published