Wall Street Slips in Light Trade on Fin12/31 10:29

   U.S. stocks are slipping in morning trading Wednesday as Wall Street closes 
out a banner year for markets driven by both optimism and uncertainty.

   (AP) -- U.S. stocks are slipping in morning trading Wednesday as Wall Street 
closes out a banner year for markets driven by both optimism and uncertainty.

   The S&P 500 was down 0.4%. The Dow Jones Industrial Average fell 179 points, 
or 0.4%, as of 11:07 a.m. Eastern time. The Nasdaq composite fell 0.4%. The 
stock indexes are coming off a three-day losing streak.

   Trading is expected to be light ahead of the New Year's Day holiday, when 
markets will be closed. With just one trading day left before the year ends, 
most big investors have closed out their positions for the year and trading 
volume has been very thin.

   Even after their mini post-Christmas pullback, the indexes are on pace for 
strong gains for the year.

   The S&P 500 is up about 17% this year, it's third straight double-digit 
annual gain. The Nasdaq is up 20.8% and the Dow has gained 13.3%.

   Wall Street's 2025 gains came as investors embraced the optimism surrounding 
artificial intelligence and its potential for boosting profits across almost 
all sectors. But the market had no shortage of turbulence along the way amid 
President Donald Trump's on-again, off-again tariffs on imported goods 
worldwide and uncertainty over the trajectory of interest rates.

   The S&P 500 plunged nearly 5% on April 3, it's worst day since the 2020 
COVID crash. It fell another 6% a day later, after China's response raised 
fears of an escalating trade war. Worries also gripped the U.S. Treasury market.

   Trump eventually put his tariffs on pause and negotiated agreements with 
countries to lower his proposed tariff rates on their imports, helping calm 
investors' nerves.

   Strong profit reports from companies and three cuts to interest rates by the 
Federal Reserve also helped drive markets higher.

   Still, the AI frenzy that drove markets in 2025 did not come without 
concerns. Chief among them is the worry that artificial intelligence technology 
may not produce enough profits and productivity to make all the investment 
worth it. That could keep the pressure on AI stocks like Nvidia and Broadcom, 
which were responsible for much of the market's gains this year.

   And it's not just AI stocks that critics say are too pricey. Stocks across 
the market still look expensive after their prices climbed faster than profits.

   On top of concerns that stocks are overvalued, the ongoing impact of the 
wide-ranging U.S.-led trade war threatens to add more fuel to inflation in the 
U.S. Despite the Fed cutting rates over concerns about the labor market, 
inflation remains solidly above the central bank's 2% target.

   Wall Street is betting that the Fed will hold interest rates steady at its 
next meeting in January.

   Traders got an update on the state of the job market Wednesday. The Labor 
Department reported that fewer Americans applied for unemployment benefits last 
week with layoffs remaining low despite a weakening labor market.

   All of the sectors in the S&P 500 were in the red Wednesday, with technology 
stocks among the biggest drags on the market. Broadcom fell 1.1% and Micron 
Technology was 2% lower.

   Restaurant chains and other companies reliant on discretionary consumer 
spending also weighed on the market. Starbucks fell 1.2%.

   Treasury yields were mostly higher in the bond market. The yield on the 
10-year Treasury held steady at 4.13%. The yield on the two-year Treasury, 
which moves more closely with expectations for what the Federal Reserve will 
do, rose to 3.46% from 3.45% late Tuesday.

   Trading in precious metals continued to be volatile as the year winds down. 
Silver swung back to a big loss, giving back 8% after Tuesday's gain of more 
than 10%. Following Friday's 7.7% jump, silver lost nearly 9% on Monday. It's 
still up more than 140% this year.

   Gold was down 1%, but is still up about 65% in 2025.

   Elsewhere, global stock markets including Germany, Japan and South Korea 
were closed Wednesday for the New Year's holidays, while trading was mixed in 
those that remained open.

   U.S. benchmark crude slipped 0.1% to $57.81 per barrel. The price of Brent 
crude, the international standard, rose 0.1% to $61.40 per barrel.