U.S. stocks surge in 2025, led by tech gains and rate cut hopes, but valuations remain high.

By December 26, 2025, U.S. Stocks are showing strong gains in 2025, with the S&P 500 up 17%, the Nasdaq Composite up 21%, and the Dow Jones Industrial Average up 14%, fueled by optimism about AI, quantum computing, and expected Fed rate cuts. Despite the rally, markets are still among the most expensive in history, prompting investors to prioritize patience, diversification, and long-term strategies over short-term timing due to concerns about future returns.