Wall Street's Tumultuous Year: AI Stocks Drive Record Highs

Despite a year marked by tariff uncertainties under President Trump, Wall Street's major indexes are closing 2025 with notable gains, driven by a surge in AI-focused stocks. The S&P 500, Dow, and Nasdaq logged double-digit growth for the third consecutive year. Expectations for 2026 remain mixed as investors evaluate Federal Reserve policies.

Wall Street's key indexes saw slight losses in the final session of 2025, rounding off a volatile year characterized by President Donald Trump's trade policies and significant interest in AI stocks.

This year marked a third consecutive year of growth, with the S&P 500, Dow, and Nasdaq achieving double-digit returns. The indexes' performance was buoyed by a strong appetite for AI-focused stocks, which hit record highs.

Despite a subdued final week and typical year-end 'Santa Claus rally' expectations faltering, the market remains optimistic. The communication services index, driven by Alphabet's impressive performance, emerged as a standout performer in 2025.

(With inputs from agencies.)