Overview
- U.S. stocks logged a third straight year of double-digit returns, with the S&P 500 up about 16%, the Nasdaq roughly 19%, and the Dow 13%.
- Nvidia stood at the center of the rally, becoming the first public company to surpass a $4 trillion market value as enthusiasm for artificial intelligence powered tech shares.
- Gains were concentrated in the so-called magnificent seven, highlighting concerns about narrow market leadership.
- Global markets also advanced strongly, with London’s FTSE 100 rising 21.5% for its best annual gain since 2009.
- Investors looked past policy shocks, including a one-day $3.1 trillion selloff after April tariff announcements and a prolonged U.S. government shutdown, even as some analysts predict a 2026 correction could occur.