Wall Street Ends 2025 with S&P 500 Dip and Weakening Dollar

US markets are wrapping up 2025 on a quieter note, with the S&P 500 futures indicating a slight dip of 0.25% and the tech-heavy Nasdaq on track for a 0.35% drop as trading concludes for the year. Despite the soft finish, the year has been eventful for the global economy, with European indices hitting record highs earlier in the week. However, the standout story of the year's end is the performance of the US dollar, which is on track for its steepest annual decline since 2017.

The dollar index, which measures the currency against a basket of global peers, has fallen by over 9% throughout 2025. Analysts attribute this weakness to heightened US policy uncertainty and the Federal Reserve's decision to resume rate cuts. This decline marks the worst calendar-year sell-off for the greenback in eight years, with major banks predicting that the weakening trend could extend well into 2026 as the market adjusts to the shifting economic landscape under the current administration.