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In 2025, the US faced economic uncertainty including significant tariffs, the longest government shutdown in history, stalled job growth, and fluctuating inflation rates.

Home / Business and Economy / AI Fuels Record Stock Surge in 2025

AI Fuels Record Stock Surge in 2025

1 Jan

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Summary

Major stock indices closed near record highs in 2025.
AI excitement drove unprecedented growth in tech valuations.
Nvidia became the first company to reach a $4 trillion valuation.

As of January 1, 2026, Wall Street has concluded 2025 on a high note, with major indices nearing record levels. The S&P 500 rose 16.4% over the year, closing at 6,845.50. Investors largely overlooked geopolitical tensions and were captivated by the burgeoning potential of artificial intelligence, which fueled significant tech stock growth.

The tech-focused Nasdaq Composite experienced a remarkable rally, climbing 20.5% for the year. This surge is closely linked to the introduction of ChatGPT in November 2022, which ignited widespread interest in AI's capabilities. Nvidia, a leading chipmaker, stood out by becoming the first company in history to achieve a $4 trillion market valuation in the summer of 2025.