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U.S. Stocks Extend Year-End Slide as China’s Yuan and Shanghai Shares Finish 2025 Strong

Rate-cut hopes faded after December FOMC minutes, driving higher yields that weighed on valuations.

Overview

  • DOW closed down 303.77 points at 48,063.29 on Dec. 31, marking a fourth straight decline to end the year.
  • FOMC minutes from early December signaled less willingness to cut rates than investors expected, pushing up long-term U.S. yields.
  • Despite the late pullback, New York stocks recorded a third consecutive annual gain for 2025, helped by strength in AI-related names.
  • China’s yuan ended 2025 at 6.9890 per dollar, a 4.2% annual appreciation and the first yearly rise since 2021, supported by eased trade frictions and a larger trade surplus.
  • Shanghai’s Composite Index finished at 3,968.84, up 18.4% for the year, reflecting improved sentiment as U.S.-China tensions eased after earlier tariff pressures.