Wednesday, December 31, 2025

Wall Street ends year's final session lower but posts big annual gains for 2025

Wall Street ends year's final session lower but posts big annual gains for 2025 

By Saeed AzharPurvi Agarwal and Nikhil Sharma

Wed December 31, 2025 6:58 PM  

There isn’t a mention of it anywhere of what might have happened at 2 pm but after spending the entire session in moderate losses, all three indexes took a major dive at 2 pm. Given a lack of explanation, we’ll focus on the obvious, that being that in this fourth day of losses it would seem the Santa Claus rally this year has petered out. The threat of an overvalued tech market and the year-end reallocations has moved money into safer assets as shown in a big spike in the VIX after 1 pm.  

Reallocations are expected to continue well into 2026. Today a third consecutive dip but despite that the year has ended with big gains on all three indexes, the S&P up 16.39%, the Nasdaq 20.36 and the Dow 12.97% for the year and capping three consecutive years of gains. For the shortened holiday week volume was very thin coming in at a meager 11.17 billion vs a 15.8 average. 

DJ: 48,367.06  -94.87          NAS: 23,419.08  -55.27         S&P: 6,896.24  -9.50              12/30

DJ: 48,063.29  -303.77        NAS: 23,241.99  -177.09       S&P: 6,845.50  -50.74             12/31

Wed 12-31-25 6:58 pm Wall Street ends year's final session lower but posts big annual gains for 2025  | Reuters


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