"The year 2025 was scary good for investors.It was scary because the U.S. stock market plunged to several historic drops on worries about everything from President Donald Trump's tariffs to interest rates to a possible bubble in artificial-intelligence technology. In the end, though, it was a good year for anyone with the stomach to stick through the swings.S&P 500 index funds, which sit at the heart of many savers' 401(k) accounts, returned nearly 18% in 2025"
"Trump dropped the biggest surprise on "Liberation Day" in April, when he announced a sweeping set of tariffs that were more severe than investors expected.It immediately triggered worries about a possible recession and spiking inflation. The S&P 500 plunged nearly 5% on April 3 for its worst day since the 2020 COVID crash. The very next day, it dropped 6% after China's response raised fears of a tit-for-tat trade war."
2025 featured extreme market volatility with several historic U.S. stock plunges alongside strong overall gains. S&P 500 index funds returned nearly 18% and reached a record high on Dec. 24, marking a third consecutive year of big returns. President Donald Trump's sweeping April tariffs triggered sharp market drops, a weaker dollar, and strain in the U.S. Treasury market before tariffs were paused on April 9. Markets rallied through summer on artificial-intelligence enthusiasm, robust corporate profits, and three Federal Reserve interest-rate cuts. Trade tensions resurged with renewed tariff threats in October, keeping markets sensitive to policy shifts.
Read at Fast Company
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