The broad S&P 500 fell 0.7 percent, the Dow Jones Industrial Average fell 0.6 percent, and the Nasdaq's technology-heavy composite index ended the last trading day of the year down 0.8 percent.
It is the third day in a row that Wall Street's leading index has closed lower, though movements have been small.
Taiwan-based semiconductor giant TSMC went against the grain, its shares rising 1.4 percent after Reuters reported that major customer Nvidia had asked the company to scale up production for next year. According to the news agency's sources, Nvidia wants to ensure it meets Chinese demand for AI chips.
Third year in a row
Looking at 2025 as a whole, a more festive picture emerges. The S&P 500 rose 16.4 percent during the year, according to the AP. It is the third year in a row that the broad index has climbed by double digits, CNBC reports.
The Nasdaq's technology-heavy composite index, which has been riding on the enthusiasm offered by the AI arms race, increased by a whopping 20.4 percent during the year, according to AP.
The Dow Jones Industrial Average showed somewhat more restraint but still rose 13 percent during the year.
This represents an impressive recovery, given the major declines that followed the market turmoil last spring. At the same time, clouds of concern have loomed over the high stock valuations, especially in AI-linked companies.
Nvidia at the top
At the top of the list is chip giant Nvidia, the world's most valuable publicly traded company, which ended the last trading day down 0.6 percent but closed the year up 38.9 percent. The company's market capitalization is $4.54 trillion.
In terms of market capitalization, iPhone manufacturer Apple is in second place with $4.034 trillion; during the year, the stock climbed 8.6 percent.
The third-largest company, Alphabet, Google's owner, with a market capitalization of $3.788 trillion, increased 65.4 percent this year.
