The Major Markets ended the holiday-shortened week on a soft note, with light volume and a lack of fresh catalysts erasing much of the prior week’s gains and leaving the Santa Claus rally largely absent. Major indexes drifted lower, led by weakness in mega-cap stocks. The Nasdaq dropped 1.5% for the week, the S&P 500 fell 1.0%, and the Dow declined 0.7%.

Small- and mid-caps also underperformed as the growth side of the style box left investors feeling wanting amidst the conclusion of the holidays.

Mega-cap growth weighed on performance, particularly in consumer discretionary and technology. Tech finished down 1.5% as large AI and software names consolidated, though chipmakers showed late-week strength, pushing semiconductors into positive territory. Consumer discretionary was the weakest sector, down over 3%, while financials also lagged.

Energy was the standout, gaining more than 3% on firm oil prices amid geopolitical tension. Industrials and utilities also posted modest gains.

Overall, thin holiday trading limited conviction, and as 2026 begins, the market remains in search of its next clear driver.