Stability on Wall Street – on the way to a third year of a double-digit jump

16:51

The bull run of the US dollar has reversed in 2025: the dollar is expected to end the year down almost 7% against a basket of currencies (DXY). This would be its sharpest annual decline since 2017. The euro has jumped more than 13% against the dollar, and is on track for its best year since 2017. The British pound is up nearly 8% against the dollar, also its sharpest annual gain since 2017.

For dollar investors, the volatility in policy has forced a re-examination of exposure to the currency. Foreign investors switched to hedging dollar investments. Other factors that weighed on the dollar included concerns about debt sustainability and interest rate cuts.

Wall Street is preparing for further weakening of the dollar in 2026. Analysts at Goldman Sachs estimate that the dollar will fall by an average of 2.8% against global currencies over the next 12 months. According to Goldman, the euro may strengthen another 6.6% against the dollar, as Germany’s infrastructure and defense spending kicks into high gear.

16:30

The final trading day of 2025 opened flat — the Nasdaq, S&P 500 and Dow Jones are now flat, but Wall Street is poised to close out another strong year.

In a market hoping to avoid a consecutive Wednesday of declines, the S&P 500 index is still expected to conclude the year with an increase of about 17%, this is the third year in a row with a double-digit annual return. Nasdaq rode on enthusiasm around artificial intelligence and recorded a jump of about 21%. The Dow Jones index rose by about 13% in 2025, when a relatively low representation of technology stocks in the 30-stock index slightly clouded its performance.

This is an impressive recovery from the landslide recorded at the beginning of April, after President Donald Trump’s announcement of the imposition of extensive tariffs. At one point, the S&P 500 index even approached bear market territory, falling nearly 19% from its February peak and closing below the 5,000-point level for the first time since April 2024.

15:20

Trading in European stock markets closed with slight declines, at the end of a shortened trading day. The FTSE index fell by about 0.1%, the KAC weakened by about 0.2%, and there was no trading on the German stock exchange today.

Trading in the futures contracts on Wall Street continues to be conducted with rate decreases of up to 0.2%.

10:25

Trading in European stock exchanges is conducted with falling rates. The London Stock Exchange falls by about 0.1%, the Paris Stock Exchange loses its value by about 0.4%. The Frankfurt Stock Exchange is closed for the new civil year, and the rest of the markets in Europe will be open for half a trading day only.

9:10

In Asia, the stock markets in Japan and South Korea are closed this morning for the new civil year. The Hong Kong Stock Exchange closed earlier than usual, down about 0.9%, and the Shanghai Stock Exchange added about 0.1% to its value.

China’s economy expanded in December for the first time since March. The purchasing managers’ index in the country rose to 50.1 points in December, above analysts’ expectations for a figure of 49.2. This, when a reading of over 50 points indicates expansion.

Wall Street closed lower last night, for the third day in a row. The Nasdaq fell by 0.2%, the S&P 500 weakened by about 0.1% and the Dow Jones lost about 0.2%. Also this morning, futures on Wall Street are red and point to declines of up to 0.3%. This, although seasonally, we are in the midst of the “Santa Claus Rally” days. The last five days of December and the first two days of January tend They traditionally tend to perform well, but given the behavior of the markets so far, this may not happen this year.

Still, the leading indices end 2025 with double-digit returns. The S&P 500 rose by about 17% and traded close to an all-time high, the Nasdaq rose by about 21% and the Dow Jones by about 14%.

Warner Brothers Discovery is expected to reject the amended hostile takeover bid of Paramount Skydance In the amount of 108.4 billion dollars, CNBC reported yesterday – this, despite the fact that billionaire Larry Ellison backed the media giant’s offer with a personal guarantee. The decision could leave Warner Bros. on track to pursue a competing cash-and-stock deal with Netflix and highlight broad concerns in the market regarding pricing, strategic fit and the certainty of completing the transaction – this, despite Paramount’s attempt to improve its offer.

In the commodity market, money has been going through a veritable roller coaster in recent days. Last Monday, the price of the precious metal fell by about 8.7% – the sharpest rate in about four years – after breaking an all-time high over the weekend. Yesterday, the prices recovered by about 10% and brought the price of silver closer to the $80 level again, but during the night the prices fell again, and now the metal is trading around the price of $70 per ounce. The price of gold also fell during the night after yesterday’s recovery, and this morning stands at about $4,310 per ounce.