Stock Market Prepares for 4th Consecutive Day of Losses
Stocks fell on Wednesday as trading started, continuing a longer downtrend, but the market remains very high for the year.
Quick overview
- All three leading U.S. stock indices fell slightly on Wednesday morning, with the Dow and S&P 500 down 0.1% and the Nasdaq down 0.2%.
- Despite recent losses, stocks have had a sensational year in 2025, with all indices set to gain double digits for the year.
- The stock market has made an impressive recovery from an April slump caused by tariffs, with the Nasdaq reaching record highs multiple times since then.
- Although the market is experiencing a slight decline in the final week of the year, it is still expected to end with significant overall gains.
All three of the leading U.S. stock indices fell on Wednesday morning as trading began with the Dow and S&P 500 down 0.1% and the Nasdaq dropping 0.2%.
Stocks have had a sensational year in 2025, but the market is looking at the fourth day in a row of losses on Wednesday. The losses have not been significant, however, and stock indices remain close to record highs still.
All three indices are set to gain double digits for the year with the Dow gaining the least at 13% in 2025. That would be due to the lack of technology stocks that outperformed estimates this year despite some pullback in November as fears surfaced over the future of the AI market.
Stocks Recovered Impressively from April Decline
Back in April, the stock market plummeted when President Donald Trump announced the first of a large number of wide-ranging tariffs. This set off reciprocal tariffs from trade partners and caused the stock market to dip extremely low in a short period of time.
In early April, the Nasdaq Composite lost 200 points in just a few days. However, just over a month later, the Nasdaq was above its 2025 high and started climbing rapidly to record levels. The tariffs that were plaguing the economy created less and less impact as the year wore on, since investors began to see that many of the announced tariffs would be decreased or repealed quickly.
The Nasdaq repeatedly high record highs through October, November, and December while still falling sharply from time to time in that period. AI market fears persisted and dragged the technology stocks down again and again, but those stocks have surged since then, with Nvidia (NVDA) up 34% for the year. That is impressive after the tech stock suffered severe losses in April and then again throughout November.
The stock market overall has made an amazing recovery from the April slump. Stock indices enjoyed a small Santa Clause rally, but now the market is slipping slightly. For the past three trading sessions, the stock market has declined overall, and it appears that Wednesday will continue that streak into the New Year.
The Dow Jones has lost about 300 points over the last few days but is still well above its December low. The S&P 500 is down slightly as well over the last few days but is still elevated compared to the mid-December low. It appears that the stock market will end the year with impressive gains overall and excellent increases for the month but a declining final week.
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