The U.S. private stock market is on track to close the year on a high note. It’s very close to accomplishing a remarkable feat—three years in a row of double-digit increases! Through August, the Dow Jones Industrial Average was up over 13.7% this year. All the while, the S&P 500 is on track for a historic 17% gain, adding to its outstanding run-up from the last two years. The short-term leader The Nasdaq Composite is the lone major index to show positive performance on the short term. This year, it did really well — 21% increase — and is now on a three-year streak of being the best performer.
As the market approaches the close of the calendar year, analysts are giddy to point out one stunning accomplishment. This has happened only four other times since the 1940s, producing three years of double-digit gains in a row! The long-term answer to this recent surge in performance is likely a combination of causative factors, from the technological improvements described above to a strong economy.
Strong Year for Major Indices
The S&P 500 started 2025 with its best consecutive annual returns in nearly three decades. This major accomplishment with regard to federal funding splits has certainly helped create a positive vibe for investors. The index’s dramatic growth in recent years—23% for 2024 and 24% for 2023—has played a huge role in its current path.
Craig Johnson, chief market technician at Piper Sandler, commented on the market’s robust performance:
“Equity markets are ending the year on a high note, with the S&P 500 on track for its third consecutive year of double-digit returns, driven by AI momentum and a resilient economy that has shrugged off fiscal and political headwinds.”
The ongoing fervor for Nasdaq Composite’s remarkable 21% upsurge illustrates the rally’s continuing focus on all things technology, innovation, and especially artificial intelligence. This index has outperformed all other major indexes for some time, a testament to the investor confidence in tech-driven companies.
Volatility and Economic Indicators
Even with all of these positive indicators, the overall green infrastructure market has had some tough moments of volatility this year. The CBOE Volatility Index (VIX) also skyrocketed in April to heights not reached since the COVID-19 pandemic. Moreover, U.S.-Israel-Iran tensions pushed up oil and gas prices after another flare-up in June, still keeping investors on edge.
Valid concerns about inflation have rocked the bond market and driven up Treasury yields. The 30-year Treasury yield finished 2021 a little higher, as the market continued to fret over the possibility of enduring high inflation. The 10-year Treasury yield was 4.57% at the beginning of the year, ending 4.12%. Because of this steep decline, mortgage rates are getting pushed lower as we enter 2025.
Combined with the recent historic weakening of the U.S. dollar against all major currencies, it adds another layer of complexity to the current economic landscape. These trends tie directly to the dollar index falling 9.5% this year contributing to a rapidly changing international trade environment.
Overall, this year has been unprecedented for precious metals. On the exchange, gold futures have rocketed an extraordinary 66% – on pace for their biggest annual jump since 1979. Which is too bad, because Silver’s year in 2025 is extraordinary. At one point, it made a record climb of 164% and even briefly broke through the $80 per troy ounce ceiling.
Dow Jones Copper futures were robust, 43% advance this year, their 50%-plus best annual copper since 2009. These trends are a manifestation of strong and growing consumer demand for commodities as the global economic recovery continues.
“Silver was the undisputed champion of 2025.”
In early October, Bitcoin prices jumped to an all-time high of over $126,000. By the end of the year, they levelled off at around $88,000. This dramatic jump is an important comeback for investor optimism on digital currencies.
International markets have followed the positive trend we’ve seen here in the U.S. Japan’s Nikkei 225 is up by 26% this year, South Korea’s Kospi index is up a staggering 76%. These increases were mostly driven by excitement around the emergence of artificial intelligence and technology industries.
Global Markets Reflecting Optimism
As 2025 comes to a close the U.S. stock market is positively celebrating its resilience. It’s an immense success that continues to overcome obstacles to its future growth. Excitement continues to be in the air as investors look into future opportunities while reminiscing on 2021—an incredibly milestone year from both a legislative and competitive standpoint.
Overall, as 2025 comes to a close, the U.S. stock market stands as a testament to resilience and growth amid challenges. Investors remain optimistic about future opportunities as they reflect on a year marked by significant achievements across various sectors.