(Dec 31): The S&P 500 Index closed out 2025 with a 0.7% loss on Wednesday, near a session low. Just 3% of its members closed in the green, the broadest decline since May.
The Nasdaq 100 Index slipped 0.8% and Bloomberg’s Magnificent Seven Index shed 0.7%. All S&P 500 sectors ended in the red. Yields on 10-year Treasuries climbed in the afternoon, rising five basis points.
The benchmark stock gauge advanced 16% in 2025, a gain which follows surges of more than 20% in the two previous years. This year’s rally came despite a sharp dip in April as US President Donald Trump introduced a tariff regime that was more onerous than anticipated.
Light trading and minor price swings have defined the final sessions of 2025, bucking expectations for a “Santa Claus rally” where equities enter the new year on a high note. Volume on Wednesday trailed the 20-day average by around 45%.
“I’m surprised that stocks have not been able to put in a better semblance of a Santa Claus rally,” said Steve Sosnick, chief strategist at Interactive Brokers. “It will be a very interesting ‘tell’ if we don’t get at least a half-hearted attempt at end of year window dressing.”
A unexpected decline in initial jobless claims during the Christmas week reflected an imperfect seasonal-adjustment process, according to Bloomberg economist Eliza Winger. She sees weak hiring as likely to keep the Federal Reserve open to interest-rate cuts in 2026.
See also: Stocks slip as bull run’s third year nears close
Nike Inc. was a bright spot on the day, climbing more than 4% after news its CEO bought shares.
Nvidia Corp fell 0.6% after a report said it approached TSMC to help ramp up production of H200 artificial intelligence chips. Tesla Inc closed 1% lower, erasing earlier gains after famed investor Michael Burry said he’s not short despite calling the company “ridiculously overvalued” earlier this month.
In biotech, Vanda Pharmaceuticals Inc soared 25% after the company said the US FDA has approved its treament for motion sickness and Axsome Therapeutics jumped 23% after its drug got priority review for use in Alzheimer’s disease. Corcept Therapeutics Inc plunged 50% after US regulators rejected the company’s treatment for a form of high blood pressure.
See also: Stocks decline for third day as 2025 nears end
Miners slipped as CME Group raised margins on precious-metal futures for the second time in the space of a week after volatile trading. Newmont Corp shed 2%. The changes take effect after the close on business on Wednesday.
Berkshire Hathaway Inc closed little changed. Wednesday is legendary investor Warren Buffett’s last day at the firm. In November, he said he was “going quiet,” marking the end of an era.
Uploaded by Liza Shireen Koshy
