Roller-Coaster Year: Wall Street's Euphoria and Challenges in 2025

Wall Street experienced a volatile yet successful year in 2025, marked by significant gains on major indexes such as the S&P 500, Dow, and Nasdaq. The year was driven by AI stock euphoria despite tariff uncertainties under President Trump. The Federal Reserve's policies set the stage for 2026.

Wall Street's major indexes concluded 2025 lower in the final trading session, yet the year witnessed substantial annual gains. This year was characterized by uncertainties surrounding tariffs under President Donald Trump and a surge in AI-focused stocks, which fueled the S&P 500, Dow, and Nasdaq to double-digit gains.

The annual rally in the stock market was largely propelled by the insatiable interest in artificial intelligence stocks, leading to record highs across all major indexes despite December's downturn. Energy and tech sectors were significant underperformers in the latest session, with companies like Microsoft and EQT Corp experiencing notable declines.

Looking ahead to 2026, market dynamics are expected to broaden internationally, as emphasized by experts. The Federal Reserve's monetary policy direction will greatly influence market sentiments going forward, amid expectations of potential shifts in leadership and economic conditions.

(With inputs from agencies.)