S&P 500 slides, but gets set to close out 2025 with 17% gain

The S&P 500 fell on Wednesday, though the index was still gearing up to close out a bumper year.

The broad market S&P 500 dipped 0.3%, as did the Nasdaq Composite. The Dow Jones Industrial Average traded down 165 points, or 0.3%.

Stocks are riding a three-session losing streak, although the declines have been mild and the S&P 500 is still set to lock in a 17% gain for the year, its third straight double-digit annual advance. The Nasdaq Composite has ridden AI enthusiasm to a 21% advance. The Dow is up 13% for 2025, hindered a bit by its lack of tech representation.

That marks an impressive recovery from the rout seen in early April following President Donald Trump’s sweeping tariffs announcement. The S&P 500 was even on the cusp of closing in bear market territory at one point, dropping almost 19% from its February high and closing below 5,000 for the first time since April 2024.

“There were lessons learned on the part of the administration that smarter, more narrow tariffs with a gradual implementation is what the market can absorb,” said Keith Buchanan, senior portfolio manager at Globalt Investments. “The market is now, because of 2025, able to look past any tariff shifts in 2026, banking on the administration remembering those lessons from 2025 and also corporate America being able to adjust on the fly in a way that continues to preserve margins.”