2025.12.3112:00:43UTC+00US Futures Dip, Stocks Still Poised for Yearly Gains

On the last trading day of 2025, U.S. stock futures experienced a slight decline as markets prepared to wrap up a year characterized by uncertainty surrounding President Trump's tariffs and the enthusiasm generated by gains in artificial intelligence (AI). The S&P 500 and Dow Jones Industrial Average are poised to achieve their eighth consecutive month of growth, buoyed by robust demand for AI-related stocks which propelled major indexes to unprecedented levels. Nevertheless, the annual increases are anticipated to fall short of the rallies witnessed over the previous two years. This is largely due to the global market sell-off in April triggered by Trump's so-called "Liberation Day" tariffs, which also introduced additional uncertainty into the Federal Reserve's policy outlook. The communication services sector emerged as a leader in performance, notably due to Alphabet's impressive 65% surge—its most substantial annual gain since 2009—bringing it near a $4 trillion market capitalization. Looking ahead to 2026, the Federal Reserve's trajectory on interest rates will significantly influence global markets, especially with signals of a decelerating U.S. labor market and the anticipation of a potentially dovish stance from a new Fed chair.