S&P 500 closes lower Wednesday, but wraps 2025 with a 16% gain
The S&P 500 pulled back on Wednesday, though the index still closed out a bumper year.
The broad market S&P 500 dipped 0.7%, as did the Nasdaq Composite. The Dow Jones Industrial Average lost 303 points, or 0.6%.
Stocks are riding a three-session losing streak, although the declines have been mild and the S&P 500 is still set to lock in a more than 16% gain for the year, its third straight double-digit annual advance. The Nasdaq Composite has ridden AI enthusiasm to a more than 20% advance. The Dow is up around 13% for 2025, hindered a bit by its lack of tech representation.
That marks an impressive recovery from the rout seen in early April following President Donald Trump’s sweeping tariffs announcement. The S&P 500 was even on the cusp of closing in bear market territory at one point, dropping almost 19% from its February high and closing below 5,000 for the first time since April 2024.
Still, the recent declines are somewhat worrisome given that the final five trading days of the year, and the first two of the next, are a seasonally rewarding stretch — often referred to as the “Santa Claus” rally — that usually gives stocks one last push toward year-end.
The recent profit-taking could also foreshadow some of the volatility ahead. Strategists surveyed by CNBC expect the S&P 500 could post yet another double-digit advance in 2026, but many worry stocks could spend much of the year range-bound as corporate earnings growth catches up to lofty multiples.
Source : Cnbc.com
