The Japan Times - Stocks pull lower at end of record year for markets

Wall Street's main indices slid lower at the start of the final trading day of 2025, with little fresh economic data apart from a drop in both first-time and continuing claims for jobless benefits last week.

They are set to post double-digit gains for 2025 with the tech-heavy Nasdaq Composite up over 21 percent for the year.

"Generally speaking, 2025 was a spectacular year for equities," said Briefing.com analyst Patrick O'Hare.

Across the globe, stock markets have struck record highs and enjoyed double-digit gains in 2025, thanks in large part to interest-rate cuts from the US Federal Reserve following drops to inflation.

London's benchmark FTSE 100 index, which set a fresh record high on Tuesday close to 10,000 points, jumped more than 21 percent in 2025 -- the biggest gain for 16 years.

Frankfurt rallied 23 percent in 2025, while Paris saw an annual gain of more than 10 percent.

In Asia, Seoul stocks rocketed 75 percent higher, while Hong Kong's Hang Seng index jumped 28 percent, and Tokyo's Nikkei 225 won more than 26 percent.

"To push meaningfully higher in 2026, equities will need confirmation that the Fed can deliver at least the two rate cuts still priced by the market, with growth unimpeded," noted Stephen Innes of SPI Asset Management.

Minutes of the Fed's policy meeting in December, which were released on Tuesday, indicated that most of its officials see future rate cuts as appropriate, should inflation cool over time as expected.

A surge in the tech sector on the back of the vast amounts of cash pumped into AI also helped push stocks to record highs, but concerns that valuations of AI stocks are too high gnawed at investors late in 2025.

AI chip juggernaut Nvidia became the world's first $5 trillion company at the end of October, while its current worth stands at around $4.5 trillion.

The price of gold, seen as a safe haven investment, scored multiple record highs this year.

The precious metal has benefitted from weakness to the dollar caused by the Fed's rate cuts and economic growth concerns triggered by President Donald Trump's tariffs war.

On Wednesday, the price of silver slid further having struck record highs in December.

Oil prices have retreated nearly 20 percent over the year, pressured by an oversupplied market.

Bitcoin, emphasising the volatile nature of the cryptocurrency sector, soared to a record high above $126,000 in October before ending the year around $88,000.

- Key figures at around 1450 GMT -

New York - Dow: DOWN 0.2 percent at 48,279.43 points

New York - S&P 500: DOWN 0.2 percent at 6,884.49

New York - Nasdaq Composite: DOWN 0.2 percent at 23,374.20

London - FTSE 100: DOWN 0.1 percent at 9,931.38 (close)

Paris - CAC 40: DOWN 0.2 percent at 8,149.50 (close)

Frankfurt - market closed for holiday

Hong Kong - Hang Seng Index: DOWN 0.9 percent at 25,630.54 (close)

Shanghai - Composite: UP 0.1 percent at 3,968.84 (close)

Tokyo - market closed for holiday

Euro/dollar: DOWN at $1.1732 from $1.1774 on Tuesday

Pound/dollar: DOWN at $1.3437 from $1.3503

Dollar/yen: UP at 156.90 yen from 156.00 yen

Euro/pound: UP at 87.29 pence from 87.15 pence

Brent North Sea Crude: UP 0.5 percent at $61.62 per barrel

West Texas Intermediate: UP 0.5 percent at $58.23 per barrel

burs-rl/jh

Y.Hara--JT