US stocks are set for a third-straight year of stellar gains
US stocks are set for a third-straight year of stellar gains
https://www.cnn.com/2025/12/31/investing/year-gains-us-stock-market
Publish Date: 2025-12-31 04:00:00
Source Domain: www.cnn.com
- The US stock market experienced a rare trend: three consecutive years of double-digit gains. The S&P 500 rose 17% in 2025, following 23% in 2024 and 24% in 2023.
- The gains were achieved despite concerns about tariffs, geopolitical turmoil, a government shutdown, and fears of a bubble.
- Strong corporate earnings, enthusiasm about AI, and optimism regarding potential interest rate cuts by the Federal Reserve contributed to the market surge.
- Despite brief volatility due to concerns about AI investments and tariffs, stocks rebounded when those fears subsided, boosted by the confidence in superior US AI technology.
- The Nasdaq, heavily influenced by tech and AI stocks, became the best-performing index for the past three years.
- The year also saw significant price movements in commodities and precious metals, including a record surge in gold futures.
- US dollar weakened against other major currencies, which was partly a result of lower interest rates and policy uncertainties.
- International markets also performed well, particularly in Asia where tech and defense sectors saw significant growth, although Bitcoin suffered an end-of-year decline.
