Wall Street Slides as Investors Wrap Up a Dynamic Year

Wall Street ended a turbulent year with losses as investors saw gains driven by AI growth and Fed rate cuts. Major indexes closed negatively, reflecting geopolitical tensions, an election, and future Fed policies. Communication and technology sectors led gains, while materials declined.

Wall Street wrapped up a volatile year on a down note, as investors digested a year of remarkable gains spurred by artificial intelligence and Federal Reserve rate cuts. Tuesday saw major U.S. stock indexes close in the red, capping a subdued session that contrasted sharply with 2024's overall performance.

The significant market factors shaped an eventful year including geopolitical tensions, a U.S. presidential election, and speculations about Fed policy directions. Greg Bassuk, CEO of AXS Investments, highlighted that although there's no Santa Claus rally, investors reaped considerable gains powered by AI, rate cuts, and a robust economy in 2024.

Despite closing the year with losses, the Nasdaq soared 28.6%, marking its best two-year streak since the late '90s. Looking to 2025, financial markets anticipate further rate cuts amidst valuation concerns and global instability. While some sectors like communication services thrived, others like materials saw declines.

(With inputs from agencies.)