Global stocks held near record highs on Wednesday, capping a year of rapid and exceptional gains driven primarily by the technology sector and artificial intelligence applications. This strong performance coincided with continued momentum in commodity markets, where precious metals such as gold and silver continued their upward trajectory, reaching new peaks as 2025 drew to a close.
The US economy and growth drivers
stock market continued its record-breaking run, with the S&P 500 closing at a new all-time high. This surge was fueled by strong economic data showing the US economy grew much faster than expected in the third quarter. This data boosted investor risk appetite, as they bet on the world's largest economy avoiding a recession. However, this economic strength had a negative impact on the bond market, where bond prices typically decline when growth and interest rate expectations rise.
Performance varied in European and Asian markets
Across the Atlantic, European markets saw mixed performance; the pan-European Stoxx 600 index was virtually unchanged at the start of trading, while the UK's FTSE 100 index, which includes the largest companies in the United Kingdom, recorded a slight decline of 0.2%.
In Asia, the picture was brighter, with Asian stocks rising, buoyed by the strong recovery on Wall Street. The broader Asia-Pacific index (excluding Japan) gained 0.4%. This year has been exceptional for Asian markets, with the index posting annual gains of 26%, its best annual performance since 2017, reflecting renewed confidence in emerging markets and the strength of the region's technology sector.
Holiday Season Trading Hours
With the holiday season upon us, many global stock exchanges temporary adjustments to their trading schedules. In the United States, the New York Stock Exchange and Nasdaq will operate for only half a trading day on Wednesday, December 24. Most Western stock exchanges will be completely closed on Thursday, December 25, in observance of Christmas. In contrast, major Asian markets such as Tokyo and Shanghai will continue trading as normal, which may lead to some price fluctuations due to the absence of Western liquidity.
General context and future expectations
This record market performance comes at a time of radical technological transformation worldwide, with artificial intelligence seen as a key driver of increased productivity and future corporate profits. The simultaneous rise in stocks and gold also points to a unique balance, with investors embracing risk in equities while holding gold as a strategic hedge against potential geopolitical or monetary volatility in the new year.
