Stock Market Trends 2025

Key facts

• The S&P 500 delivered a strong year.:
• The index rose 17.9% including dividends in 2025, according to RBC Wealth Management, marking another year of double-digit and above-average gains.
• Large-cap stocks continued to outperform.:
• Fidelity reported that large caps outperformed again in 2025, reinforcing the importance of the biggest publicly traded companies in overall market returns.
• International stocks improved relative to U.S. stocks.:
• According to Fidelity, international stocks finally outpaced U.S. stocks in 2025, suggesting broader global market participation.
• Technology remained a leading sector.:
• J.P. Morgan’s review indicated that technology significantly outperformed the S&P 500 during 2025. Its chart showed the technology sector near 130 in November, compared with the S&P 500 below 115 on the same indexed scale.
• AI-related earnings supported technology valuations.:
• Nasdaq reported that the stock prices of major AI companies rose more slowly than their earnings in 2025. As a result, the price-to-earnings ratios of the largest AI companies actually declined.
• The market showed resilience despite headwinds.:
• Fidelity described 2025 as a year that may have laid the groundwork for continued market momentum into 2026, even amid market and economic challenges.
• The bull market produced substantial cumulative gains.:
• RBC Wealth Management reported that the 2025 S&P 500 total return helped lift cumulative returns since the beginning of the bull market to 100.6%.

Insights

• ### 1. Market leadership was strong but concentrated
• The combination of large-cap and technology outperformance indicates that a significant portion of the market’s gains came from the largest companies, particularly those connected to technology and artificial intelligence. Investors should distinguish between broad market strength and leadership concentrated in a narrower group of stocks.
• ### 2. Technology gains were supported by fundamentals
• The decline in the P/E ratios of major AI companies, despite continued share-price gains, suggests that earnings growth outpaced price appreciation. This is generally a healthier pattern than valuation expansion driven only by rising prices.
• ### 3. International diversification became more valuable
• International stocks outperforming U.S. stocks in 2025 was an important change from the pattern of persistent U.S. leadership. It highlights the potential benefit of maintaining exposure across regions rather than relying exclusively on U.S. equities.
• ### 4. Strong returns do not eliminate forward-looking risk
• A 17.9% S&P 500 total return is considerably stronger than a typical average-year expectation, so investors should avoid assuming that the same pace will automatically continue. The 2025 performance also raises the importance of valuation, earnings expectations, and portfolio concentration when planning for subsequent years.
• ### 5. Earnings growth was a key market narrative
• The Nasdaq data suggest that investors were not merely rewarding AI companies with higher valuations; in many cases, corporate earnings were expanding even faster than stock prices. Monitoring whether earnings continue to justify valuations is therefore central to evaluating technology-market sustainability.

Results from Findborg

• 2026 Mid-Year Outlook: U.S. Stocks and Economy | Charles Schwab
  Per NDR, the <strong>median one-year forward estimate for S&amp;P 500 stocks is nearly 13%</strong>. As shown below, that remains in a zone where the index has
• 2025 stock market report | Fidelity
  <strong>Large caps outperformed once again, while international stocks finally outpaced US stocks</strong>. Despite some headwinds, 2025 may have laid the groun
• In the Rear View: How Did Our 2025 Themes Pan Out? | J.P. Morgan
  In November 2025, <strong>the technology sector peaks near 130 before settling slightly lower, while the S&amp;P 500 remains below 115</strong>. The gap between
• U.S. and Global 2025 Stock Market Review
  Although the S&amp;P 500 reached record highs, the U.S. stock market lagged behind several foreign stock markets. <strong>In 2025 the U.S. S&amp;P 500 returned
• United States Stock Market Index - Quote - Chart - Historical Data - News | Trading Economics
  <strong>The main stock market index of United States, the US500, fell to 7786 points on August 14, 2026, losing 0.17% from the previous session</strong>. Over t
• U.S. equity returns in 2025: Record-breaking resilience
  ... Kelly Bogdanova Vice President, ... straight year of double-digit and above-average gains, with the <strong>S&amp;P 500 rising 17.9 percent including divide
• Top 10 Charts from 2025 | Nasdaq
  In fact, in 2025, we saw their <strong>stock prices climbing less quickly than their earnings</strong>, resulting in the PE ratio of the largest AI companies ac
• The stock market surged in 2025. What do experts think could happen in 2026? - ABC News
  The stock market <strong>surged to record highs</strong> in 2025, hurtling past tariffs, a government shutdown and fears of a bubble in artificial intelligence.
• 2025 Stock Market Recap: Complete Sector Analysis, Magnificent Seven Divergence, Winners & Losers
  <strong>Technology was the clear winner in 2025, gaining 25.2%</strong> as measured by the iShares U.S. Technology ETF (IYW). Energy and defensive sectors showe
• 2025's biggest chart trends | Fidelity
  Of course, it is true that stocks ... in 2025. But stronger market breadth throughout the year suggests the bullish momentum has been more widespread, which is

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• S&P 500 performance in 2025
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Answer synthesized by Borg AI from multiple sources. See full results, sources, and community knowledge on Findborg.