U.S. stocks rose 18% in 2025, boosted by AI-driven earnings and Fed rate cuts, despite tariff-related volatility.

America. Strong corporate earnings, particularly in artificial intelligence, and rate cuts by the Federal Reserve drove stocks to a record high in 2025, with the S&P 500 gaining almost 18%. Trump's tariff announcements in April caused market turmoil, which led to a brief halt and talks that allayed investor concerns. Global markets, led by South Korea, Japan, and Europe, outperformed despite ongoing tensions over Fed independence, and cryptocurrencies recovered amid increasing regulatory support.