US stocks slip, but rise over 10% annually for 3rd straight year

US stocks declined at the close of Wednesday’s session, but posted annual gains exceeding 10% for the third consecutive year, supported by the artificial intelligence (AI) boom and the Federal Reserve’s continued interest rate cuts.

At the session close, the Dow Jones Industrial Average fell 0.63%, or 303 points, to 48,063 points, recording annual gains of 12.47% and rising 0.73% in December.

The broader S&P 500 Index slipped 0.74%, or 50 points, to 6,845 points, but achieved annual gains of 16.39%, while it was flat on a monthly basis.

The Nasdaq Composite declined 0.76%, or 177 points, to 23,241 points, rising 20.36% over the year despite losing 0.53% in December.

In Europe, the Stoxx Europe 600 Index edged down about 0.10% to 592 points, but recorded monthly gains of around 2.8% and posted its best annual performance since 2021 after rising 16.70% over the year.

The UK’s FTSE 100 Index slipped about 0.10% to 9,931 points, but maintained monthly gains of 2.17% and climbed 21.51% over the year, marking its largest annual increase in 16 years.

France’s CAC 40 Index fell 0.23% to 8,149 points, rising just 0.77% in December and posting annual gains of 10.42%. German and Japanese stock exchanges were closed for a public holiday marking New Year celebrations.

In oil markets, Brent crude futures for March declined 0.78%, or 48 cents, to $60.85 per barrel, extending losses over 2025 to 20.5%. February Nymex crude futures fell 0.91%, or 53 cents, to $57.42 per barrel, posting annual losses of 20%.

As for gold, gold futures for February declined 1%, or $45.2, to $4,341.10 per ounce at the settlement of the final session of 2025, but achieved annual gains of 63.52%, the highest since 1979.