US equity markets opened 2026 with the S&P 500 retreating from its prior week’s all-time high. Trading volumes were light as 2025 concluded, and the modest pullback could be partly explained by year-end tax-loss selling and a drift higher in longer-term Treasury yields. The release of December FOMC minutes showed heightened disagreement among Fed officials, which contributed to reduced market expectations for near-term rate cuts. Current market probabilities suggest the April Fed meeting as the earliest a rate cut is likely to occur. Labor market data remained tight, with initial jobless claims falling and continuing claims easing. Market breadth weakened across major U.S. indices, reflecting narrower participation. Meanwhile, leadership came from select technology names, particularly semiconductor and AI infrastructure companies, while mega-cap tech was mixed. Overall, US markets ended the week lower, with the S&P 500, Dow Jones, and Nasdaq all logging roughly 1% declines to close out 2025 and begin the new year.