Equity markets closed 2025 with solid gains, extending a run that now includes three consecutive positive years for U.S. stocks. For the full year, the Dow Jones Industrial Average rose nearly 13%, the S&P 500 gained more than 16%, and the Nasdaq Composite advanced just over 20%.
While returns were broadly positive, market leadership once again skewed toward the largest companies, with the equal-weighted S&P 500 still trailing the cap-weighted index by a wide margin.
Notably for diversified investors, strength in international equities added meaningful value in 2025. Developed markets outside the U.S. rose nearly 32% for the year, while emerging markets gained more than 33%, handily outpacing U.S. stocks. These returns reflected a combination of improving growth expectations abroad, a weaker U.S. dollar, and strong performance across parts of Europe and Asia. While international stocks were not immune to volatility, their outperformance served as a powerful reminder of how global diversification can benefit investors over full market cycles.
Winter 2026 Market Update Webinar
Join us January 28th at 12PM ET for our Winter 2026 Market Update Webinar as we examine the forces shaping the year ahead, assess potential volatility and seasonal opportunities and discuss portfolio strategies designed to navigate an evolving economic, political and market landscape.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Withum Wealth Management (“WWM”), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from WWM. WWM does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to WWM’s web site or blog or incorporated herein and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. WWM is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the WWM’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.withumwealth.com. If you are a WWM client, please contact us in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing, evaluating, or revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Please also remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.
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Winter 2026 Investment Commentary
Equity markets closed 2025 with solid gains, extending a run that now includes three consecutive positive years for U.S. stocks. For the full year, the Dow Jones Industrial Average rose nearly 13%, the S&P 500 gained more than 16%, and the Nasdaq Composite advanced just over 20%. While returns were broadly positive, market leadership once again skewed toward the largest companies, with the equal-weighted S&P 500 still trailing the cap-weighted index by a wide margin.
