S&P 500, Nasdaq end flat in holiday-thin trade, Meta gains on deal

The S&P 500 and the Nasdaq closed little changed in choppy trading on Tuesday (December 30), as gains in communication services stocks were offset by declines in technology and financial stocks, with financials also weighing on the Dow.

Communication services shares were among the biggest gainers on the S&P 500, fueled by a rise in Meta Platforms. The technology company said it would acquireChinese-founded artificial intelligence startup Manus, accelerating efforts to integrate advanced AI across its platforms such as Facebook and Instagram.

Information technology stocks were range-bound with Apple and Nvidia subdued, while Microsoft inched up.

On Monday (December 29), these heavyweight stocks snapped a six-session winning streak, their longest since September. Last week, the rally had also propelled the S&P 500 to a record high.

Trading volumes remained thin in the holiday-truncated week, which analysts expect could heighten market volatility.

Losses in Goldman Sachs and American Express weighed on the Dow.

Citigroup fell a day after it announced its board approved the sale of its Russian unit, AO Citibank, to Renaissance Capital. The deal will lead to a pre-tax loss of about $1.2 billion, largely related to currency translation.

The S&P 500 lost 9.50 points, or 0.14%, to end at 6,896.24 points, while the Nasdaq Composite lost 55.27 points, or 0.24%, to 23,419.08. The Dow Jones Industrial Average fell 94.87 points, or 0.20%, to 48,367.06.

The S&P 500 and the Dow are set for their eighth consecutive month of gains, their longest monthly winning streak since 2017. Some investors eye a "Santa Claus rally", in which the S&P 500 typically posts gains over the last five trading days of the year and the first two of January, according to the Stock Trader's Almanac.

Production: Soren Larson, Lisa Bernhard/Reuters