US stock market is ending 2025 on a somber note today, with major indexes sputtering as investors wrap up a year defined by extreme volatility. On this final trading Wednesday, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all slipped roughly 0.4%, marking a fourth consecutive day of losses. Despite this late-December slump, the broader narrative for 2025 remains overwhelmingly positive. The benchmark S&P 500 is currently on track to finish the year with a gain of over 17%. This impressive performance represents the index’s sixth year of 15% or higher returns within the last seven years, showcasing a resilient American economy.
The Dow Jones Industrial Average slipped to 48,214.73, down 152.33 points, or 0.31%. The S&P 500 eased 0.29% to 6,876.52, while the tech-heavy Nasdaq Composite fell 0.26% to 23,358.62. All three major indexes are on track for a fourth straight session of declines, effectively dampening hopes for a late-year “Santa Claus rally.”
The tech-heavy Nasdaq has led the charge this year, climbing more than 20% despite facing a brief bear market just eight months ago. Meanwhile, the blue-chip Dow has advanced 13%, proving that traditional industrial and value stocks still hold weight in a modern portfolio. While today’s “red” screen has effectively extinguished hopes for a traditional “Santa Claus rally” to end the month, the annual totals tell a story of recovery. Investors have navigated a minefield of shifting trade policies, fluctuating interest rates, and the rapid expansion of artificial intelligence. As the closing bell approaches, Wall Street is preparing to celebrate a year that defied many skeptical forecasts.
Why are Dow, S&P 500, and Nasdaq slipping at year-end despite strong 2025 gains?
The recent pullback reflects profit-taking and caution rather than a fundamental shift in sentiment. After months of strong performance, many investors are locking in gains as the calendar flips to a new year. Thin holiday trading volumes have also amplified market moves, making even modest selling pressure more visible.
For the full year, the S&P 500 is up more than 17%, putting it on track for its sixth year of gains above 15% over the past seven years. The Nasdaq has led the way, climbing more than 20%, driven largely by mega-cap technology stocks and enthusiasm around artificial intelligence. The Dow, more exposed to industrials and consumer names, has gained over 13% in 2025.
That strength came despite periods of intense stress. The Nasdaq briefly slipped into bear market territory roughly eight months ago. The S&P 500 also flirted with a bear market after sweeping tariffs announced by Donald Trump in April rattled investors. While many of those measures were later softened or reversed, the episode reminded markets how quickly policy shocks can change the outlook.
From that point on, stocks largely powered higher. Concerns over tariffs, global conflicts, and slowing growth surfaced periodically, but none proved enough to derail the rally. Instead, optimism around earnings growth and AI-driven productivity kept buyers engaged.
Today’s Top Stock Gainers
The leaderboard was dominated by healthcare and space-tech firms, with some stocks more than doubling their value in a single session.
- Intelligent Bio Solutions (INBS): +115.85% The day’s undisputed leader, INBS skyrocketed after announcing a strategic manufacturing partnership with Syrma Johari MedTech. This deal is expected to slash production costs by 40% and quadruple the company’s manufacturing capacity for its fingerprint-based drug screening technology.
- Anghami Inc. (ANGH): +64.66% The Middle Eastern streaming giant surged following the release of its H1 2025 results. The company reported a 97% year-over-year revenue increase and a doubling of its paid subscriber base to 3.54 million, fueled by a high-profile partnership with Warner Bros. Discovery and the integration of OSN+ content.
- Sidus Space, Inc. (SIDU): +26.40% Continuing its recent momentum, Sidus Space saw heavy volume as it closed a major public offering to fund its satellite manufacturing expansion. The stock reached a daily high of $3.70, a significant recovery for the aerospace firm.
- Vanda Pharmaceuticals (VNDA): +26.03% Vanda hit a new 52-week high after the FDA approved its drug NEREUS (tradipitant) for the prevention of vomiting caused by motion sickness. This marks the first new pharmacological treatment for the condition in over 40 years.
- Ondas Holdings (ONDS): +12.42% The provider of private wireless data and automated drone solutions gained traction as investors rotated into small-cap tech names ahead of the 2026 cycle.
Today’s Notable Market Losers
Despite the year’s overall gains, several high-profile stocks faced selling pressure as investors engaged in year-end tax-loss harvesting or responded to sector-specific headwinds.
- NIO Inc. (NIO): -8.09% The Chinese EV manufacturer led the losers’ list among active stocks, dropping to $5.05. The decline reflects broader concerns over increased competition in the global electric vehicle market and potential tariff impacts heading into 2026.
- Tesla, Inc. (TSLA): -0.09% While the loss was marginal, Tesla’s inability to join the year-end rally was notable. The stock hovered near $454, remaining roughly 9% below its yearly high as investors weighed the impact of plateauing delivery growth.
How did tariffs, geopolitics, and AI shape Wall Street’s roller-coaster 2025?
Few years have packed as many crosscurrents into a single calendar. Trade policy headlines dominated the spring, with investors struggling to price in the potential impact of higher tariffs on corporate profits and inflation. At the same time, geopolitical tensions abroad added to uncertainty, particularly around energy markets and global supply chains.
Yet the defining theme of 2025 was artificial intelligence. Soaring AI-related valuations lifted major indexes, especially the Nasdaq. Companies tied to data centers, chips, and advanced software captured a growing share of market gains. Critics warned of frothy prices, while bulls argued that AI represented a genuine structural shift rather than a short-lived trend.
The result was a market that repeatedly stumbled, then recovered. Each pullback tested investor confidence, but dips were consistently met with buying. By late summer, the narrative had shifted from fear of recession to questions about how long the expansion could last.
What does the Federal Reserve signal mean for stocks heading into 2026?
Monetary policy remains one of the biggest variables for markets as 2026 approaches. The Federal Reserve is navigating deep internal divisions after a year marked by sticky inflation and uneven economic data.
Minutes from the Fed’s December meeting showed just how close policymakers were on their most recent decision. Several officials argued it could be “some time” before another interest rate cut is appropriate. As of now, roughly 85% of market bets point to the Fed holding rates steady at its January meeting.
Complicating the outlook further is a looming leadership change. A new chair is expected to replace Jerome Powell by mid-2026, adding another layer of uncertainty to policy expectations. Investors will be watching closely for signals on inflation, labor markets, and growth to gauge how flexible the Fed can be next year.
Can markets rally again in 2026, or are new risks building?
Despite lingering risks, Wall Street enters 2026 with a largely optimistic outlook. Every major forecaster tracked by Bloomberg expects stocks to rise for a fourth consecutive year. That consensus reflects confidence in corporate earnings, consumer resilience, and the continued adoption of AI technologies.
Still, optimism is tempered by clear threats. The AI boom could cool if earnings fail to justify valuations. The economy could surprise to the downside if higher rates bite more deeply. Political uncertainty also looms large, with U.S. policy shifts capable of reshaping markets quickly.
Elsewhere, asset classes tell a mixed story. Bitcoin is heading for a rare annual loss despite holding near $88,000, while oil prices are on track for their largest yearly decline since the pandemic, weighed down by global oversupply. These moves highlight how uneven the global landscape remains beneath headline equity gains.