United States benchmark averages closed lower on Wednesday (Thursday AEDT), but the major indices ended 2025 at least 13% higher.
The S&P 500 shed 0.7% to 6,845.50 points, the Dow Jones Industrial Average was down 0.6% to 48,063.29 and the Nasdaq Composite dipped 0.8% to 23,241.99.
Across 2025, the S&P 500 was up 16.4%, the Dow gained 13.0% and the Nasdaq rose 20.5%. The S&P 500 had increased by 23% in 2024 and 24% in 2023.
While markets have been buoyed by technology stocks this year, the S&P 500’s tech index dropped 0.9% on Wednesday. Nvidia shares slipped 0.6%, Microsoft’s were down 0.8%, and Amazon’s fell 0.7%.
Nike stock was up 4.1% after CEO Elliott Hill said he had purchased around US$1 million in shares.
Average analyst forecasts for 2026 indicate a 9% rise in the S&P 500 across 2026, according to Bloomberg.
However, the slump in 2025’s final trading days could indicate difficulties in 2026. The Santa Claus rally period, which includes the last five trading days of the previous year and the first two days of the new year, sees the S&P 500 post average gains of 1.3%.
“The S&P 500 is negative thus far during the period, which could spell trouble for 2026 returns according to historical precedent. Years where markets saw negative returns during the Santa Claus Rally period tended to precede bear markets or times when stocks could be bought at lower prices later in the year,” wrote Zacks Investment Research strategist Bryan Hayes.
U.S. two-year bond yields were up 0.02% to 3.475%, and 10-year yields were up 0.04% to 4.163%.
Markets were closed for New Year’s Day on Thursday (Friday AEDT), and will reopen on 2 January.
