The S&P 500 reversed course sharply in the final trading session of the week, closing 1.2% lower after reaching a new all-time high of 5,523.72 on Thursday. The move erased gains from the prior session and highlighted growing technical resistance.
- S&P 500 closed at 5,445.11 on Friday, down 1.2% after hitting a record high of 5,523.72 on Thursday
- Weekly change: -0.9%, marking the first negative week since mid-October
- Technology sector led losses, with Nasdaq-100 down 1.5%
- 10-year Treasury yield rose to 4.87%, highest since November 2024
- Apple (AAPL) and Microsoft (MSFT) saw significant profit-taking after recent rallies
- Year-to-date gain for S&P 500 remains at 12.4%
The S&P 500 snapped its three-day rally on Friday, falling 1.2% to close at 5,445.11, just days after topping 5,520 for the first time in history. The reversal marked the most significant weekly pullback since October 2024, with the broad market index losing 0.9% over the full week despite earlier momentum. The drop came amid persistent concerns over elevated valuations and the Fed’s unchanged policy stance, which failed to quell speculation about rate cuts in early 2026. The index encountered a well-defined resistance zone near 5,520, widely regarded as a psychological and technical barrier. This level had previously held as a ceiling during the previous two months, and its breach on Thursday was met with immediate profit-taking. Sector-wise, technology stocks led the decline, with the Nasdaq-100 dropping 1.5% as large-cap tech firms like Apple (AAPL) and Microsoft (MSFT) saw their gains reverse after surging earlier in the week. Financials were also under pressure, with the S&P 500 Financials sector down 1.3% amid elevated Treasury yields. The 10-year U.S. Treasury yield rose to 4.87% on Friday, the highest level since early November, increasing discount rate concerns for rate-sensitive equities. Despite the pullback, the S&P 500 remains up 12.4% year-to-date, underscored by strong earnings and resilient consumer data. Market participants are now assessing whether the recent sell-off reflects a healthy correction or the start of a broader trend. Trading volume surged 21% above average, signaling heightened volatility and active sentiment shifts. Further moves will likely be influenced by upcoming inflation reports and Fed commentary in early January.