Key insights and market outlook
Despite a decline in the final trading session of 2025, major Wall Street indices recorded significant annual gains, driven by robust performance in AI-focused stocks. The S&P 500, Dow Jones, and Nasdaq all achieved double-digit growth for the year, marking their third consecutive year of gains. The Dow Jones also recorded its longest monthly gain streak since 2017-2018 with eight consecutive months of growth.
The final trading session of 2025 saw major Wall Street indices decline, with the Dow Jones dropping 0.63% to 48,063.29, S&P 500 falling 0.74% to 6,845.50, and Nasdaq decreasing 0.76% to 23,241.99. Despite this end-of-year dip, all three indices recorded significant annual gains for 2025.
The year's market performance was primarily driven by the continued enthusiasm for AI-related stocks, which propelled all major indices to record highs at various points during 2025. This AI-driven rally contributed to the overall positive annual performance despite various market challenges, including uncertainties surrounding global trade policies and economic outlook.
Wall Street 2025 Performance
AI Stocks Driving Market Gains