US STOCKS-Wall Street eyes steady open after tech-driven losses pause rally

For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.

Updates before markets open

By Purvi Agarwal and Nikhil Sharma

Dec 30 (Reuters) - Wall Street's main indexes were poised for a subdued open on Tuesday, a day after they logged their steepest one-day decline in nearly two weeks as technology stocks came under renewed selling pressure.

Wall Street kicked off the last trading week of 2025 on a dour note on Monday, as heavyweight tech and AI-linked stocks retreated from last week's gains that had lifted the S&P 500 .SPX to a record high.

The benchmark index came within the 1% range of a historic 7,000-point mark and the Dow .DJI closed at a record high last week, with some investors eyeing a "Santa Claus rally", a seasonal phenomenon where the S&P 500 typically posts gains in the last five trading days of the year and the first two in January, according to Stock Trader's Almanac.

"As we near the year end, investors are facing a dilemma: if this is the year that AI is about to take off, will the U.S. stock market outperform once more?" said Kathleen Brooks, research director at XTB.

"If the answer is yes, then the end of year malaise could make way for U.S. stock indices to play catch up early in 2026."

The indexes are set for robust monthly gains in December, with the S&P 500 and the Dow on track for their eighth consecutive month of gains, their longest monthly winning streak since 2017.

At 08:27 a.m. ET, Dow E-minis YMcv1 were down 2 points, S&P 500 E-minis EScv1 were down 0.25 points and Nasdaq 100 E-minis NQcv1 were down 3.75 points.

On the docket are minutes from the Federal Reserve's December 9-10 meeting, where the central bank delivered an expected 25-basis-point cut and took a cautious stance on further reductions until there was more clarity on the health of the U.S. labor market.

However, mild economic data since then and expectations of a new dovish Fed chair have fueled optimism around further U.S. interest rate cuts in 2026.

The S&P 500 has added about 17% so far this year, as the frenzy to capitalize on artificial intelligence helped the U.S. benchmark overtake Europe's STOXX 600 .STOXX, despite investors diversifying away from U.S. stocks earlier in the year amid trade disputes and an uncertain central bank outlook.

Geopolitical tensions could remain a risk to market sentiment as Russia said it would toughen its negotiating stance after accusing Kyiv of attacking a Russian presidential residence, days after U.S. President Donald Trump indicated progress in peace talks.

Among stocks, miners stabilized on Tuesday after declines in the previous session, tracking a sharp pullback in gold and silver prices.

Newmont NEM.N and U.S.-listed shares of Barrick Mining B.N ABX.TO gained about 2% each, and the Global X Silver Miners ETF SIL.P was up 1.7% in premarket trading.

T1 Energy TE.N rose 4.8% after the solar firm announced it had completed a $160 million sale of Section 45X production tax credits to a leading, investment-grade buyer of tax credits.

Trading volumes are expected to be light in the holiday-affected week with U.S. markets shut on Thursday for New Year's Day.

(Reporting by Purvi Agarwal and Nikhil Sharma in Bengaluru; Editing by Krishna Chandra Eluri)

((Purvi.Agarwal@thomsonreuters.com;))