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Tech pullback drags Wall Street stocks lower

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Tech pullback drags Wall Street stocks lower

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US tech stocks slipped on Friday as investors pivoted away from companies that had led markets higher for much of this year.

The S&P 500, Wall Street’s main equity benchmark, fell 1.1 per cent on Friday, while the tech-heavy Nasdaq Composite dropped 1.5 per cent. Elon Musk’s electric-car maker Tesla was among the biggest laggards, falling 5 per cent, while chipmaker Nvidia dropped 2.1 per cent.

“I watch probably 30 different [market indicators] and they’re all down today,” said Jack Ablin, chief investment officer at Cresset Capital. “This was just widespread selling without much enthusiasm.”

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Tech stocks have rallied strongly this year, as investors bet artificial intelligence would drive demand for everything from servers to microchips. The gains accelerated after Donald Trump’s election victory in November on bets that the president-elect would usher in more business-friendly policies when his term begins next month.

However, the sector has been choppier in recent weeks as investors reassess their best-performing holdings at the end of the year. The Federal Reserve also sparked ructions last week when it forecast only two quarter-point rate cuts next year, compared with its September forecast of four, as officials fretted about growing risks that inflation becomes lodged well above the central bank’s 2 per cent target.

The hawkish projections have pushed up US long-term borrowing costs, with the 10-year Treasury yield rising to 4.63 per cent on Friday, compared with lows in September of about 3.6 per cent. Higher yields typically tarnish the appeal of holding shares in fast-growing companies.

Citigroup analysts on Friday said that while they still forecast the S&P 500 will rise about 10 per cent from current levels by the end of next year, they expect a “more volatile leg of the bull market ahead”.

The US bank noted this year’s gains in stock prices compared with corporate profits were “setting a high bar for fundamentals in the year ahead, and even the year after”. The S&P 500 trades at about 22.2 times expected earnings over the next year, compared with the average over the past decade of 18.1, according to FactSet data.

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Greg McBride, chief financial analyst at Bankrate.com, said that, “even with that volatile Friday, the market’s still higher than it was on Monday”.

He said: “Markets don’t go straight up, and a pullback often serves as a foundation for the next market advance.”

The S&P 500 is still up 25 per cent year-to-date even after Friday’s pullback, roughly on a par with the previous year’s gains.

The so-called Magnificent 7 Big Tech stocks — Apple, Microsoft, Meta, Amazon, Alphabet, Nvidia and Tesla — have been responsible for roughly half of the S&P 500’s total returns, including dividends, this year, said Howard Silverblatt at S&P Dow Jones Indices.

All of the Magnificent 7 shares declined modestly on Friday, however.

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Trading activity is typically lighter than usual during the holiday period, something that can exacerbate volatility.

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Lawmakers threaten Attorney General Bondi with contempt over incomplete Epstein files

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Lawmakers threaten Attorney General Bondi with contempt over incomplete Epstein files

Attorney General Pam Bondi, accompanied by Deputy Attorney General Todd Blanche (L) and FBI Director Kash Patel (R), speaks during a news conference at the Justice Department on Nov. 19. Some lawmakers said the department’s release of files relating to Jeffrey Epstein had too many redactions as well as missing information.

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Two lawmakers are threatening a seldom-used congressional sanction against the Department of Justice over what they say is a failure to release all of its files on convicted sex offender Jeffrey Epstein by a deadline set in law.

Reps. Ro Khanna and Thomas Massie spearheaded the effort to force the Epstein files’ release by co-sponsoring the Epstein Files Transparency Act, but both have said the release had too many redactions as well as missing information.

“I think the most expeditious way to get justice for these victims is to bring inherent contempt against Pam Bondi,” Massie, a Republican from Kentucky, told CBS’s Face the Nation on Sunday. “Basically Ro Khanna and I are talking about and drafting that right now.”

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Inherent contempt refers to Congress’ authority to fine or arrest and then bring to trial officers who are obstructing legislative functions. It was last successfully used in the 1930s, according to the American Bar Association.

Khanna, a California Democrat, noted that the House would not need the Senate’s approval to take such action, which he said would result in a fine for Attorney General Pam Bondi.

“I believe we’re going to get bipartisan support in holding her accountable,” he told Face the Nation.

Justice Department defends partial release

The Justice Department on Sunday defended its initial, partial release of documents, some of which were heavily redacted.

“The material that we released on Friday, or the material that we’re going to release over the next a couple of weeks, is exactly what the statute requires us to release,” said Deputy Attorney General Todd Blanche on NBC’s Meet the Press, referring to the Epstein Files Transparency Act.

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Blanche said the administration has hundreds of lawyers going through the remaining documents to ensure that victims’ information is protected. Still, lawmakers from both parties remain unsatisfied.

“Any evidence or any kind of indication that there’s not a full reveal on this, this will just plague them for months and months more,” said Republican Sen. Rand Paul of Kentucky on ABC’s This Week. “My suggestion would be — give up all the information, release it.”

Blanche told NBC he was not taking the threats of contempt seriously.

“Not even a little bit. Bring it on,” he said, adding that lawmakers who have spoken negatively about Bondi and FBI Director Kash Patel “have no idea what they’re talking about.”

Back and forth over Trump photo

The trove of documents released Friday contained little new information about Epstein, prompting accusations that the department wasn’t complying with the law. There was a photograph included in Friday’s release that showed a desk full of photos, including at least one of President Trump. It was among more than a dozen photographs no longer available in the Justice Department’s “Epstein Library” by Saturday, NPR found.

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On Sunday, the Justice Department re-uploaded the photo of the desk, and provided an explanation on X.

“The Southern District of New York flagged an image of President Trump for potential further action to protect victims,” the post read. “Out of an abundance of caution, the Department of Justice temporarily removed the image for further review. After the review, it was determined there is no evidence that any Epstein victims are depicted in the photograph, and it has been reposted without any alteration or redaction.”

The Justice Department did not offer an explanation for the other photos whose access had been removed.

Blanche told NBC the Justice Department was not redacting information around Trump or any other individual involved with Epstein. He said the Justice Department had removed photos from the public files “because a judge in New York has ordered us to listen to any victim or victim rights group, if they have any concerns about the material that we’re putting up.

“And so when we hear concerns, whether it’s photographs of women that we do not believe are victims, or we didn’t have information to show that they were victims, but we learned that there are concerns, of course, we’re taking that photograph down and we’re going to address it,” he said.

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Earlier Sunday, the Justice Department also posted to X a new version of the 119-page transcript of grand jury proceedings in the case of Epstein associate Ghislaine Maxwell. The original version had been entirely redacted.

“Here is the document now with minimal redactions. Documents and photos will continue to be reviewed consistent with the law and with an abundance of caution for victims and their families,” the Justice Department wrote in its post.

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Russia says talks on US peace plan for Ukraine ‘are proceeding constructively’

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Russia says talks on US peace plan for Ukraine ‘are proceeding constructively’

FILE – Russian Presidential foreign policy adviser Yuri Ushakov, left, U.S. President Donald Trump’s son-in-law Jared Kushner, center, U.S. special envoy Steve Witkoff, foreground right, and Russian Direct Investment Fund CEO Special Presidential Representative for Investment and Economic Cooperation with Foreign Countries Kirill Dmitriev, behind Witkoff, arrive to attend talks with Russian President Vladimir Putin at the Senate Palace of the Kremlin in Moscow, Russia, Dec. 2, 2025. (Alexander Kazakov, Sputnik, Kremlin Pool Photo via AP, File)

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Video: First Batch of Epstein Files Provides Few Revelations

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Video: First Batch of Epstein Files Provides Few Revelations

new video loaded: First Batch of Epstein Files Provides Few Revelations

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First Batch of Epstein Files Provides Few Revelations

The Justice Department, under pressure from Congress to comply with a law signed by President Trump, released more than 13,000 files on Friday arising from investigations into Jeffrey Epstein.

Put out the files and stop redacting names that don’t need to be redacted. It’s just — who are we trying to protect? Are we protecting the survivors? Or are we protecting these elite men that need to be put out there?

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The Justice Department, under pressure from Congress to comply with a law signed by President Trump, released more than 13,000 files on Friday arising from investigations into Jeffrey Epstein.

By McKinnon de Kuyper

December 20, 2025

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