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Markets Close 2025 With Big Stock Gains and Striking Cross-Asset Divergences

Policy shocks alongside AI fervor reshaped market returns.

FILE - Specialist Anthony Matesic works on the floor of the New York Stock Exchange, Tuesday, May 6, 2025. (AP Photo/Richard Drew, File)
FILE - Trader Anthony Confusione works on the floor of the New York Stock Exchange, Monday, May 5, 2025. (AP Photo/Richard Drew, File)
FILE - Specialist Michael Pistillo works on the floor of the New York Stock Exchange, Tuesday, July 8, 2025. (AP Photo/Richard Drew, File)
Jewellery is displayed at the Gold Souk market in Dubai, United Arab Emirates, March 14, 2025. REUTERS/Amr Alfiky

Overview

  • S&P 500 funds returned more than 18% through Dec. 11, setting a record high and capping a strong year for U.S. equities.
  • Gold jumped nearly 70% for its best year since 1979 as the U.S. dollar fell about 10% against major peers.
  • Trump’s April tariff announcement triggered back-to-back S&P drops of roughly 5% and 6% before a pause and later negotiated easing, while three Federal Reserve rate cuts supported the rebound.
  • The U.S. 30-year Treasury yield surged past 5.1% in May, then eased to about 4.8% late in the year, reviving concerns about rising term premia.
  • Bitcoin hit an all-time high above $125,000 in October before sliding to around $89,000, with investors now watching a forthcoming Fed leadership pick and 2026 policy risks.