Stocks fall as markets close a record year

Stocks slipped in thin year-end trading after 2025 produced record gains, driven by central bank interest-rate cuts and strong tech growth tied to artificial intelligence.

Stocks mostly fell on Wednesday in light trading as markets wrapped up a year of unusually strong gains. The year’s rise reflected several central banks easing policy and a marked run-up in technology shares linked to artificial intelligence. Officials at the U.S. central bank signaled in minutes that further rate cuts would be appropriate if inflation eases. Some investors expressed concern about high valuations in a subset of AI-related stocks. What we know so far: - London’s benchmark edged down about 0.1 percent but finished the year with an annual gain above 20 percent. - Major global indexes posted double-digit gains in 2025, with the Nasdaq up over 21 percent for the year and several Asian and European markets also rising strongly. - Federal Reserve minutes released in December were reported as showing most officials view future rate cuts as appropriate if inflation cools. - Nvidia reached a very high market value during the year and has been a prominent driver of tech-sector gains. - Gold reached multiple record highs, oil fell roughly 20 percent over the year, and bitcoin moved sharply higher then eased by year-end. Summary: Major indexes closed the year with sizable gains, but a late dip left trading mixed at the final session. Near-term market direction will hinge on whether central banks follow through on the rate moves currently priced by investors. Undetermined at this time.