Wall Street falls in light trading on the final day of 2025, another banner year for markets

Wall Street fell on the final day of trading for 2025, a banner year for markets that was driven by both optimism and uncertainty.

The S&P 500 pulled back 0.7% Wednesday. The Dow Jones Industrial Average lost 0.6%, and the Nasdaq composite gave back 0.8%.

Trading was very light ahead of the New Year’s Day holiday Thursday, when markets will be closed. The S&P 500 rose more than 16% this year as investors embraced the optimism surrounding artificial intelligence and its potential for boosting profits for companies.

Treasury yields rose in the bond market.