Market Retreat Intensifies as Semiconductor and Storage Sector Pressures Weigh on Equities

Semiconductor companies and data storage providers dragged major indices lower today, raising the question of why are stocks falling across the board. The Nasdaq 100 posted a -0.34% loss, the S&P 500 declined by -0.33%, and the Dow Jones Industrial Average retreated -0.35%, all sliding to their weakest levels in recent days. March E-mini S&P 500 futures slipped -0.35%, while March E-mini Nasdaq futures fell -0.38%, signaling continued selling pressure heading into the new year.

Sector Weakness and Mining Slump Drive Overall Market Decline

The primary catalyst behind today’s market selloff centers on semiconductor heavyweights facing headwinds. Micron Technology led the Nasdaq 100 losers with losses exceeding -1%, while other chipmakers including KLA Corp, Qualcomm, Broadcom, and Marvell Technology all surrendered more than -1% of their value. Western Digital, the data storage major, similarly experienced pressure alongside the broader semiconductor complex.

Commodity-linked equities also contributed to the downward momentum. Mining stocks retreated sharply, with Newmont and Barrick Mining both losing more than -1%. This weakness coincided with precious metals turmoil—silver prices plunged over -7%, while gold prices hit a 2.5-week bottom.

Labor Market Strength and Bond Yields Create Headwind

A stronger-than-anticipated labor market report added complexity to today’s trading. US weekly initial jobless claims unexpectedly declined by 16,000 to reach 199,000, a one-month low, signaling resilience in employment conditions. This data proved hawkish for interest rates, as the 10-year Treasury note yield climbed 2 basis points to 4.14%. The higher yield environment traditionally pressures equity valuations and growth-oriented sectors.

Chinese Economic Optimism Provides Limited Support

Offsetting some domestic concerns, China’s economic performance exceeded forecasts. The December manufacturing PMI rose to 50.1 from 49.2, marking the fastest expansion pace in nine months. Non-manufacturing PMI similarly climbed to 50.2, surpassing expectations of 49.6. These improvements offer some encouragement for global growth dynamics, though trading volumes remained subdued due to holiday closures in Germany and Japan.

Notable Individual Stock Moves

Beyond sector-wide pressure, individual names captured attention. Corcept Therapeutics collapsed over -51% after FDA rejection of its hypertension treatment relacorliant. Conversely, Vanda Pharmaceuticals surged more than +31% following FDA approval of its motion-sickness prevention drug Nereus.

Nvidia bucked the broader semiconductor weakness, advancing +0.43% after Reuters reported the company engaged TSMC to accelerate production of its H200 artificial intelligence chips, responding to stronger demand signals from China. Meanwhile, Nike rallied over +2% within the Dow following insider buying activity detected in SEC filings, where CEO Hill acquired approximately $1 million in shares Monday. Terawulf gained more than +5% after receiving an upgrade to outperform.

Market Mechanics and Forward Outlook

Volatility characterized this final trading day of the calendar year, with trading activity well below seasonal norms. Historically, the final two weeks of December have favored equities—since 1928, the S&P 500 has climbed 75% of the time during this period, averaging gains of 1.3%.

Bond markets showed mixed signals, as mild safe-haven flows supported Treasuries despite rising yields. The 10-year UK gilt yield retreated 1.9 basis points to 4.479%. Markets currently assign just a 15% probability to a 25 basis point rate cut at the January 27-28 FOMC meeting.

Upcoming economic readings will dominate the holiday-abbreviated trading week, with December manufacturing PMI expected Friday. These reports will provide insight into whether why are stocks falling represents a temporary pullback or signals deeper concerns about economic momentum heading into 2026.