U.S. Stocks Opened Strong but Ended Weak — 2025 Was a “Bull Year,” Yet the Finale Shocked the Market

Last night marked the final trading day of U.S. stocks in 2025. What was supposed to be a cheerful year-end close turned tense, as the market suddenly sold off in the final session, with all three major indices finishing lower. So where did the shock come from? Just when investors expected a smooth ending, new U.S. labor data came in stronger than expected. Initial jobless claims fell to 199,000 last week, a recent low, signaling that the labor market remains highly resilient. This immediately rattled the market: with the economy still strong, the probability of a Federal Reserve rate cut in January plunged to below 16%. As rate-cut expectations cooled, it became the final trigger that dragged markets down in the last hours of trading. Then where is the “bull” market? While the final day was disappointing, the bigger picture tells a different story. Looking at the full year, U.S. equities delivered a strong performance. Driven by the AI boom, the Nasdaq gained over 20% for the year, while the S&P 500 rose more than 16%. However, the year also marked a historic moment. Warren Buffett officially retired, stepping down as CEO of Berkshire Hathaway — signaling the end of an era.