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Markets End 2025 Lower After Banner Year for AI-Led Rally

Fed rate cuts powered double-digit gains across major indexes.

Overview

  • Wall Street slipped on the final day of trading as investors took profits, with the Dow down 0.63%, the S&P 500 off 0.74%, and the Nasdaq lower by 0.76%.
  • Full-year gains were broad: S&P 500 +16.39%, Nasdaq +20.36%, Dow +12.97%, and Stoxx Europe 600 +16.67%, with Asia’s surge led by Seoul at +75.63%.
  • A Fed easing cycle and resilient corporate profits supported the advance, while the U.S. dollar recorded its weakest year in eight years.
  • Precious metals soared, with gold up nearly 65% and silver almost 150% for their best year since 1979, as oil marked its worst year since 2020.
  • AI remained a key engine as TSMC began mass production of 2nm chips, though strategists warned about stretched valuations and the risk of a 2026 correction.