US stocks ended 2025 with modest declines, with the S&P 500 up about 17% for the year despite a quiet end to the year and minor fluctuations. Nike surged after CEO share purchases, while Tesla experienced volatility. The market showed resilience despite geopolitical tensions and economic uncertainties, with sector performances varying and notable moves in biotech and commodities.
US stocks have had a strong year with over 37% gains since April, driven mainly by tech stocks, which contributed nearly 40% of the market's return. Despite recent sell-offs, valuations in tech remain attractive, though some strategists are reducing exposure to AI themes and shifting focus to small caps and Latin American stocks. The market is expected to be quiet in the upcoming week with limited trading around the holidays, and economic data remains mixed as investors await clearer signals in the new year.