US stocks just posted a third straight year of stellar gains
The S&P 500 has gained just over 17% this year.
New York (CNN) — The US stock market just achieved something so rare that it’s only happened six times since the 1940s: three consecutive years of double-digit gains.
The S&P 500 rose 16.39% this year, after rising 23% in 2024 and 24% in 2023. That gain comes despite concerns about tariffs, geopolitical turmoil, nerves about a bubble and the longest government shutdown in history.
A three-peat of double-digit gains is relatively rare. The index had only experienced it five times before this year (this time being the sixth), with two occurrences ending in a four-peat and one — in the 1990s — ending in a five-peat, according to Sam Stovall, chief investment strategist at CFRA Research.
Stocks were boosted in 2025 by robust corporate earnings, enthusiasm about AI and optimism about interest rate cuts from the Federal Reserve.
Stocks stumbled into the end of the year, with the Dow, S&P 500 and Nasdaq each falling four days in a row to close out 2025. Nonetheless, it was year of healthy gains for the stock market.
“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,” Craig Johnson, chief market technician at Piper Sandler, said in a December 10 note.
A year of extreme volatility
The S&P 500 entered the year on the heels of its strongest back-to-back yearly performance since the 1990s. As President Donald Trump prepared to take office, Wall Street was cautiously optimistic about the prospect of further gains.
Stocks tumbled in late January after Chinese tech upstart DeepSeek unveiled an AI chatbot that raised concerns Silicon Valley was pouring unnecessary amounts of money into AI companies. But markets reclaimed higher ground as investors doubled down on bets that US companies were poised to win a race for superior AI technology — a theme that has propelled markets higher this year despite nerves about a bubble.
Markets experienced a bout of historic volatility in the spring as Trump rolled out his so-called “Liberation Day” tariffs, levying import duties on nations across the globe and threatening to upend the global trading system.
But stocks rebounded sharply after Trump walked back his most severe tariff threats, and the S&P 500 and Nasdaq in late June hit their first record highs since February. Stocks have largely coasted higher since, buoyed by strong corporate earnings and Fed rate cuts, which can make stocks relatively more appealing than bonds and support higher stock prices.
The Dow Jones Industrial Average gained 12.97% this year. The blue-chip index entered the year trading around 43,000 points, tumbled below 37,000 points in April, and then rebounded as Trump delayed most of his tariffs. The Dow hit a fresh record high above 45,000 in August and then surpassed 46,000, 47,000 and 48,000 points in quick succession, sometimes hitting those milestones in just a few weeks.
AI has been the story of the year and, consequently, the tech-heavy Nasdaq Composite rose 20.36%, making it the best performer of the three major indexes each of the past three years. Tech and artificial intelligence stocks have powered US markets higher since October 2022, when OpenAI first debuted ChatGPT, marking the start of an AI bull market.
It was a year of flashes of extraordinary volatility. Wall Street’s fear gauge, the CBOE Volatility Index, surged in April to levels not seen since the Covid-19 pandemic. The VIX flared up again in June as tensions flared between Israel and Iran, but volatility has since settled.
Bonds
The Treasury market — which influences borrowing costs across the economy — was largely stable after intense volatility in the spring related to Trump’s tariffs.
The 10-year US Treasury yield started the year at 4.57% and ended the year at 4.17%, helping to keep mortgage rates lower in 2025.
Bond yields and prices move in opposite directions. Ten-year Treasury bonds rallied, pushing yields lower, as investors adjusted to prospects of Fed rate cuts and a weakening labor market.
Meanwhile, the 30-year US Treasury yield started the year at 4.79% and ended the year at 4.84% as concerns linger about stubborn inflation.
Dollar’s worst year since 2017
The US dollar weakened against other major currencies this year. Its decline was a defining feature of markets.
The dollar index, which measures the dollar’s strength against six major currencies, fell roughly 9.4% this year, posting its worst year since 2017.
The dollar weakened amid affronts to the Fed’s independence, lower interest rates from the central bank and uncertainty about US policy decisions and tariffs.
Precious metals
Gold futures traded in New York soared 64% this year, posting their best annual gain since 1979. Gold futures entered the year trading at around $2,640 a troy ounce and hit a record high of more than $4,500 in December before paring some gains and trading at around $4,327.
Gold is considered a resilient investment, with investors expecting the yellow metal will retain its value in crisis, if inflation surges or if currencies drop in value.
As gold climbed higher, other precious metals followed. Silver had a standout year, as the metal smashed through records and briefly soared above $80 a troy ounce. Silver prices gained roughly 140% in 2025.
Silver prices were boosted by dual demand from investors and industry. Silver is widely used in solar panels, electric vehicles and batteries.
“Silver was the undisputed champion of 2025,” said Luke Rahbari, CEO at Equity Armor Investments.
Other precious metals have had stellar years, too: Platinum futures soared roughly 125%, while palladium futures surged 81%.
Copper, oil and commodities
Copper futures traded in New York gained roughly 42% this year, posting their best annual gain since 2009.
Copper prices soared because of increased industrial demand, in addition to uncertainty about tariffs and fractures in international trade.
Oil prices whipsawed amid geopolitical tensions but ended the year firmly lower, posting their biggest annual losses since 2020. US crude oil prices fell roughly 19.94% this year to $57.42 a barrel, hovering near their lowest level in almost five years. Brent crude, the international benchmark, fell about 18.48% to $60.85 a barrel.
Meanwhile, other commodities had a mixed year. Cocoa futures tumbled 48% this year, reversing course after soaring 178% in 2024. Cocoa prices spiked last year amid climate concerns and fell this year as the outlook for harvests improved.
International stocks
While US stocks had a great year, international markets did even better.
South Korea’s benchmark Kospi index surged 75.6% and posted its best year since 1999, boosted by enthusiasm about AI. Japan’s Nikkei 225 gained 26%.
In Europe, markets received a boost from plans for government spending on defense and improved prospects for economic growth. European defense stocks have rallied this year, with German manufacturer Rheinmetall gaining 155%. Germany’s benchmark DAX index gained 23.01% and posted its best year since 2019.
International stocks were also boosted by a weaker US dollar. When the dollar weakens in value and other currencies strengthen, it boosts the value of investments denominated in those currencies.
Bitcoin
Bitcoin started the year with a bang and ended with a whimper.
The world’s largest cryptocurrency by market value ended the year trading around $87,255, posting an annual loss of roughly 7.7%.
Bitcoin prices soared this year — hitting a record high of $126,000 in early October — as the Trump administration promoted crypto-friendly policies and ushered in mainstream acceptance of cryptocurrencies. However, the crypto market struggled at the end of the year as recent sell-offs spooked some investors.
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