Stock Market Eases Off Highs As Year Winds Down; Gold Stocks Rebound, Biotechs Weaken

The Santa Claus rally was absent again in the stock market Tuesday as the major indexes extended losses for the third straight session. Gold and other metal stocks rebounded after some selling Monday, while profit-taking hit several leading biotechs on the penultimate trading day of 2025.

The Russell 2000 small-cap index lagged with a loss of 0.7%, while the Nasdaq composite, S&P 500 and Dow Jones industrials closed with losses of 0.2% to 0.3%. Volume rose on the Nasdaq, giving the index another mild distribution day.

One stock that managed a big gain was FTAI Aviation (FTAI), a member of the Nasdaq composite. It soared out of a cup-with-handle base and cleared a 184.12 buy point as shares jumped more than 14%. The company said it’s launching FTAI Power, which will convert jet engines into gas turbines to power data centers.

The Innovator IBD 50 ETF (FFTY) eased 0.3%, but that wasn’t too bad considering that Rhythm Pharmaceuticals (RYTM) and Travere Therapeutics (TVTX) closed with losses ranging from 3% to 5%.

After a breakout on Dec. 11, Rhythm reversed lower Tuesday and is now testing its 50-day line. Travere is retesting a prior buy area after a breakout last week. IBD’s biotech group was one of the day’s worst performers, down 1.4%.

Stock Market Today: Biotechs Lag

Several biotechs in the MarketSurge Growth 250 also showed weak action.

After a breakout from a cup-with-handle base, Genmab (GMAB) lost ground for a third straight session and undercut its 21-day line and a 32.48 buy point. After a recent breakout, Catalyst Pharmaceuticals (CPRX) showed similar action by falling below a 23.92 buy point. Both stocks fell around 3%.

Biotech Harrow (HROW) held up relatively well. Shares fell 1.5%, but the stock traded tightly and held inside Monday’s range. It closed just below an alternate entry of 51.30.

After plunging 5.4% in higher volume Monday, IBD’s gold and silver group was one of the day’s top performers, up 1.3% in lower volume. Leading gold stocks in the MarketSurge Growth 250 included Newmont (NEM), which rebounded 2% after a test of its 21-day line Monday. It’s back in the 5% buy zone from a 98.58 entry. Newmont’s latest breakout came from a second-stage consolidation after a breakout from a first-stage cup-with-handle base in June.

The release of the minutes from the Dec. 10 Federal Reserve meeting at 2 p.m. ET came and went without much fanfare. The minutes revealed a still divided Fed, with varying views on the future path of interest rates. For now, futures traders at CME FedWatch expect two more quarter-point rate cuts next year, which would bring the federal funds rate down to a range of 3% to 3.25%.

Several equities in the stock market are currently floating near buy points but have stalled out or aren’t making progress. That’s mostly because volume has dried up in the stock market with institutional investors on the sidelines. As volume starts to come back into the stock market, the first few weeks of January should give clues about the market’s near-term direction.

In the chip-equipment group, Nova (NVMI) briefly topped a 338.35 buy point in light volume, but the stock faded off highs and closed below its entry. Shares still rallied 0.6%.

Stocks To Watch

In the Leaderboard model portfolio, a bullish move for GE Aerospace (GE) on Dec. 22 looked great, but the breakout hasn’t gained traction. Other breakout attempts from the likes of Amer Sports (AS), Evercore (EVR), and Globus Medical (GLOB) have had a hard time getting going as well.

While the action in top-rated growth stocks has been mixed at best, the Nasdaq composite and S&P 500 continue to trade tightly and hold near highs. While the Nasdaq’s distribution day count might seem high at seven, keep in mind that only two of those days had the feel of true institutional selling — the 1.7% decline on Dec. 12 and the 1.8% decline on Dec. 17.

It’s just not a stock market under meaningful distribution at this point. And there are plenty of good setups to consider among top-rated growth stocks.

Brazilian fintech Nu Holdings (NU) also outperformed with a gain of 1.3%. After a breakout in late November, the stock has been moving sideways while holding support at its 10-week line. A flat base could be in place by the end of the week.

In the oil-and-gas sector, TechnipFMC (FTI) is making a bullish first test of its 10-week line after a breakout in late October. Shares rallied 1.1%.

Meanwhile, a couple of recent initial public offerings are worth monitoring. In the Medical-Products group, Medline (MDLN) is trading nicely above its IPO price after debuting on Dec. 17. Same with Andersen Group (ANDG), which premiered the same day.

View the General Market Indicators chart page here.

Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight.

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