FX.co ★ US Stocks Close 2025 Near Records After Turbulent Year

On the last trading day of 2025, US stocks remained mostly stable, concluding a tumultuous year marked by uncertainty surrounding President Trump's tariffs and enthusiasm for AI-driven growth. The S&P 500 edged up to 6,900 points, hovering near an all-time high and poised to register a 17% gain for the year—marking its third consecutive year of double-digit increases. Meanwhile, the Nasdaq is set to rise by 21%, with the Dow experiencing a 13% increase, partly hindered by its limited exposure to the technology sector. Despite these solid gains, the annual returns were less robust compared to the rallies of the previous two years. This was largely due to Trump's "Liberation Day" tariffs, which triggered a global sell-off in April and complicated the Federal Reserve's policy outlook. Leading the sector performance was communication services, bolstered by Alphabet's impressive 65% surge—the company's best year since 2009, as it nears a $4 trillion market capitalization. Looking forward, the Federal Reserve's interest rate path is anticipated to play a crucial role in global markets throughout 2026, amid indicators of a slowing US labor market and the potential for a dovish new Fed chair.