Dialogos

Stocks Retreat as Markets Close Out Record Year

Published December 31, 2025, 20:00
Stocks Retreat as Markets Close Out Record Year

Stock markets globally largely retreated on Wednesday, concluding a year of record gains for major assets, driven by central bank interest rate cuts and a booming technology sector fueled by artificial intelligence. The Nasdaq Composite is expected to post gains exceeding 21% for 2025, while European markets like London (FTSE 100) and Frankfurt saw substantial increases, the largest in recent years. Asian stocks also experienced impressive growth, led by the Seoul exchange. Despite the overall rally, Fed meeting minutes indicated expectations for further interest rate reductions, contingent on continued inflation control. Nvidia, a leader in artificial intelligence, reached a valuation of $5 trillion, though its current value is slightly lower. In commodity trading, gold, as a safe-haven investment, hit multiple records, while oil prices declined by 20%. Bitcoin, exemplifying the volatility of cryptocurrencies, reached a high but closed the year at a lower level. Overall, 2025 was a positive year for stock markets, but Wednesday's retreat signals a potential shift in momentum as investors closely monitor AI stock valuations and future central bank actions.