Wall Street Rally: AI Stocks and Resilient Economy Drive Gains in 2025

Wall Street's major indexes slipped in the final session of 2025 but are set to end the year positively, driven by AI stock enthusiasm amid President Trump's tariff uncertainties. Despite tech stock losses, the S&P 500 and Dow are on track for eight straight months of gains, highlighting economic resilience.

In the last trading session of 2025, Wall Street's major indexes saw a slight decline, closing a year marked by President Donald Trump's tariff uncertainties and strong performance in AI-focused stocks. Yet, the S&P 500, Dow, and Nasdaq are poised to close the year with significant double-digit gains, marking their third consecutive year of increases.

Throughout the day, tech stocks continued to experience losses, with notable companies like Microsoft and Broadcom falling by 0.3% and 1%, respectively. By 10:06 a.m. ET, the Dow Jones Industrial Average had decreased by 120.36 points to 48,246.70, while the S&P 500 dropped by 13.49 points to 6,882.75 and the Nasdaq Composite lost 43.35 points to 23,375.73.

Despite ending with four consecutive sessions in the red, expectations for a 'Santa Claus rally' have kept spirits high, bolstered by significant gains in AI stocks. As Wall Street closes its eighth consecutive month of growth, strong performances by companies like Nvidia and Alphabet have highlighted an economic resilience that defied global market turmoil following tariff-induced disruptions.

(With inputs from agencies.)