As the year 2025 concludes, the stock market reflects a mixture of year-long triumphs and recent setbacks. While major indexes like the Nasdaq, S&P 500, and Dow Jones Industrial Average have shown impressive annual growth, the final trading days have seen a negative trend. Beyond the market's fluctuations, significant developments are unfolding in various sectors, from the financial repercussions of natural disasters on hospitality giants to strategic shifts in retail, and upcoming tax implications for student loan forgiveness. These diverse events collectively paint a comprehensive picture of the economic landscape as the year transitions.
The close of 2025 finds major U.S. stock indexes experiencing a slight dip, despite robust annual gains. Nasdaq, S&P 500, and Dow Jones Industrial Average futures were marginally down ahead of the year's final trading day. This comes after a three-session losing streak, interrupting an earlier five-day rally that saw the Dow and S&P 500 reach all-time closing highs. For the year, the Nasdaq surged by 21%, the S&P 500 by 17%, and the Dow Jones Industrial Average by 14%. This growth was largely fueled by strong performances from key technology companies. Micron Technology led the charge with a 248% increase, followed by Palantir at 139%, Advanced Micro Devices at 78%, Alphabet at 66%, and Nvidia, the world's most valuable public company, up 40%.
In other news, Hyatt Hotels anticipates a negative impact on its 2025 full-year adjusted EBITDA due to damage from Hurricane Melissa in Jamaica. The hotel chain's stock experienced a 2% decline in premarket trading after it revised its outlook. Hyatt expects its adjusted EBITDA to fall at the lower end of its previously projected range of $1.09 billion to $1.11 billion, primarily due to cancellations in Jamaica. Seven Hyatt properties in Jamaica are projected to remain closed until the fourth quarter of 2026. Despite these challenges, Hyatt shares have still seen a 4% increase for the year.
Retailer Bath & Body Works is also recalibrating its business approach after a 1% year-over-year sales decline and a 33% drop in adjusted income during the fiscal third quarter. CEO Daniel Heaf acknowledged that the company had over-relied on external collaborations and promotions while neglecting its core product lines, leading to an "overwhelming and confusing" in-store experience for shoppers. To address this, Bath & Body Works plans to refocus on traditional offerings, emphasize "clean" ingredients, and streamline its inventory presentation across both physical and digital platforms. The goal is to attract new customers and simplify the shopping journey, aiming to rejuvenate its stock performance.
Looking ahead to 2026, significant changes are coming for the taxation of federal student loan forgiveness. Under a temporary pandemic-era rule, borrowers whose loans were discharged under income-driven repayment plans between 2021 and 2025 were exempt from taxes on the forgiven amounts. However, starting in the new year, these tax exemptions will no longer apply, potentially leading to higher tax bills for those who qualify for forgiveness in 2026. Despite ongoing litigation causing delays in some discharges for 2025, the Department of Education has clarified that any borrower meeting eligibility requirements in 2025 will not face taxes on their forgiven loans, even if the processing occurs in 2026.
In commodity markets, silver futures fell more than 8% to $71.40 per ounce, and gold futures dropped 1.5% to $4,325 per ounce. This decline followed the CME Group's decision to increase margin requirements for precious metals for the second time in less than a week, a move prompted by volatile trading conditions. The 10-year Treasury yield, a key influencer of various loan interest rates, remained relatively stable at around 4.13%. Bitcoin was trading at $88,800, recovering from overnight lows of approximately $87,800. The U.S. dollar index, which measures the dollar's strength against other major currencies, was largely unchanged at 98.23. West Texas Intermediate crude oil futures saw a modest increase of 0.5%, reaching $58.25 per barrel.
The financial year concludes with diverse market movements and corporate strategies shaping the economic outlook. While technology stocks propelled major indexes to strong annual returns, the end of the year brought minor corrections. Companies like Hyatt and Bath & Body Works are adjusting to specific challenges, while future tax policies on student loan forgiveness signal important shifts for individuals. These varied developments underscore the complex and interconnected nature of the global economy.