Stock futures are little changed, as Wall Street readies to close out the third year of a bull market: Live updates

S&P 500, YTD performance

Those declines are somewhat worrisome fixed that the last 5 trading days of the year, and the archetypal 2 of the next, are a seasonally rewarding agelong — often referred to as a clip for the "Santa Claus" rally — that usually gives stocks 1 past propulsion toward year-end.

But the caller profit-taking could besides foreshadow immoderate of the volatility ahead. Strategists surveyed by CNBC expect the S&P 500 could station yet different double-digit beforehand successful 2026, but galore interest stocks could walk overmuch of the twelvemonth range-bound arsenic firm net maturation catches up to lofty multiples.

"As we look towards adjacent year, we're expecting a small spot much volatility," Meghan Shue, caput of concern strategy and portfolio operation astatine Wilmington Trust, said Tuesday connected CNBC's "Closing Bell."

"I deliberation this is simply a steadfast benignant of churn arsenic we reset for the adjacent limb of the bull market, which we expect to continue, extracurricular of what we inactive person arsenic a decently precocious recession risk," Shue added.

Artificial quality has been the defining unit driving the marketplace for the past 3 years. In 2023, the S&P 500 surged 24%, aft the debut of ChatGPT the anterior twelvemonth unleashed a fervor astir the companies astir apt to payment from a technological gyration that harkens backmost to the dawn of the internet.

In 2024, the wide marketplace scale rallied 23%. As of Tuesday's close, successful 2025, the S&P 500 is up much than 17%, and connected the cusp of all-time highs.

Still, the AI communicative fractured somewhat this year, arsenic the rally started to broaden retired to different sectors, and adjacent show among the alleged Magnificent Seven stocks bifurcated. Alphabet was the large victor among the megacaps, up much than 65% twelvemonth to date, arsenic investors stake the hunt elephantine could borderline retired OpenAI. Amazon was the laggard, gaining astir 6%.

What's more, galore plus classes extracurricular the megacaps started to outperform. Commodities had an particularly bully year, with gold up much than 66%, and silver higher by much than 165%.

As of Tuesday's close, stocks were besides connected gait to adjacent retired a winning month. The Dow is up 1.4% period to date, its eighth winning period successful a row, the archetypal specified streak going backmost to 2018. The S&P 500 is up 0.7%, besides an 8 period triumph streak. The Nasdaq is higher by 0.2%, its eighth affirmative period successful nine.

— CNBC's Alex Harring and Chris Hayes contributed to this report.