4:15pm: That's a wrap on 2025
Stocks wrapped up 2025 with a modest selloff on Wednesday, but the losses did little to overshadow a strong year for the markets.
The Dow Jones slipped 304 points, or 0.6%, to finish at 48,063. The S&P 500 fell 51 points, or 0.7%, to 6,846, while the tech-heavy Nasdaq dropped 177 points, or 0.8%, to 23,242. The Russell 2000 also lost 19 points, or 0.8%, closing at 2,482.
Despite the final-day retreat, 2025 was a banner year for equities. The S&P 500 rose more than 16% for the year, marking its sixth year of double-digit gains in the past seven. The Nasdaq led the pack with a 20% climb, while the Dow gained roughly 13% over the 12-month period.
Markets are now taking a short New Year’s break, with trading closed Thursday. They’ll reopen on Friday as investors kick off 2026. Wishing everyone a happy and prosperous New Year!
12:55pm: Losses piling up
Markets were treading water just after the midday mark, with investors sticking to the sidelines as losses quietly piled up.
The blue chip-heavy Dow Jones Industrial Average, the S&P 500 and the tech-heavy Nasdaq Composite were all down around 0.3%, putting the major indexes on track for a fourth straight day in the red. It’s been a choppy end to the year, with little in the way of fresh catalysts to change the mood.
Outside of equities, crypto was also under pressure. Bitcoin is heading for its third consecutive monthly loss, setting it up to finish the year in negative territory. That said, some traders see room for a turnaround, with odds favoring a potential flip in sentiment when January rolls around.
Energy markets weren’t offering much cheer either. Oil prices are on course for their biggest annual drop since the early days of the pandemic in 2020, as a wave of global oversupply continues to weigh on prices. Brent crude futures have fallen about 17% since the start of the year, while US benchmark West Texas Intermediate crude is down roughly 18%.
Stepping back, 2025 has still been a strong year for markets despite the recent wobble. Adam Turnquist, chief technical strategist at LPL Financial, said calling the year “resilient” may actually undersell it.
“The economy showed remarkable strength by overcoming higher inflation, a slowing labor market, fewer rate cuts than originally expected, and a sharp rise in the effective tariff rate,” Turnquist said, adding that growth held up without tipping into recession.
He noted that Corporate America delivered double-digit earnings growth quarter after quarter, while consumers kept spending despite higher prices. The S&P 500 heads into the final trading day of the year with a roughly 17% gain, marking a rare streak of three straight years with returns above 15%.
Historically, Turnquist said, years like that tend to be followed by average gains of about 8%, though with drawdowns along the way, a reminder that even strong bull markets don’t move in a straight line.
9:55am: Quiet start on Wall Street
Stocks opened slightly lower Wednesday, as Wall Street starts the final trading week of 2025 on a quiet note.
The Dow Jones fell 60 points, or 0.1%, to 48,307, while the S&P 500 slipped 5 points, also 0.1%, to 6,891. The tech-heavy Nasdaq Composite dipped 23 points, down 0.1%, to 23,396, and the Russell 2000 lost 2 points to 2,498.
Despite the small pullback, major indexes are wrapping up a strong year. The S&P 500 is up more than 17% in 2025, on track for its sixth year of 15%-plus gains over the past seven. The Nasdaq has outpaced peers with over a 20% rise, while the Dow has gained more than 13% for the year.
Economic data released Wednesday morning showed initial jobless claims totaled 199,000 for the week ending December 27, below expectations of 218,000, suggesting a tight labor market heading into 2026.
Investors will likely be digesting year-end flows and positioning for a potentially quiet start to the new year, with light economic and corporate catalysts expected this week.
8:10am: Muted finish to 2025
Wall Street is set to tiptoe into the final trading session of the year, with futures pointing modestly lower after three straight losing days.
Futures tied to the Dow Jones, the S&P 500 and the tech-heavy Nasdaq were all down about 0.2% early Tuesday, suggesting investors are still in a cautious mood as 2025 draws to a close. With holiday-thinned volumes and plenty of portfolios already locked in for the year, moves could be choppy even if the headlines are light.
The latest speed bump for markets came from the Federal Reserve. Minutes from the central bank’s December meeting, released Tuesday, showed policymakers were far from unanimous, describing the decision as a close call. Several officials signaled it could be “some time” before the Fed feels comfortable cutting rates again, a reminder that the path to easier policy may be slower than investors hoped just a few months ago.
For now, markets appear to be taking that message in stride. Roughly 85% of bets are on the Fed holding rates steady at its January meeting, suggesting expectations have largely settled.
On the economic calendar, there’s one data point worth watching before the opening bell. At 8:30 a.m. ET, the US releases weekly initial jobless claims, which could offer a final snapshot of labor market conditions before the calendar flips to 2026. Any surprise there could spark a reaction, though traders may be reluctant to place big bets on New Year’s Eve.
With earnings season still weeks away and no Fed speakers scheduled, Tuesday may end up being more about housekeeping than headline risk. Still, as 2025 comes to a close, investors will be watching closely to see whether stocks can find their footing or whether the year signs off on a softer note.