"The S&P 500 closed out 2025 with a total return of 16.4%, marking its third consecutive year of double-digit gains. Despite a choppy finish, it was a strong year for equities, with every sector ending the year in positive territory. Growth-oriented sectors led the way, supported by a consumer that proved far more resilient than many expected. (All returns discussed are total returns and include dividends)."
"Technology once again topped the leaderboard, delivering a 24.6% return as investment in artificial intelligence, semiconductors, and cloud infrastructure continued at a rapid pace. Communication Services followed closely, up 23.1%, driven by strength in digital advertising, improved platform efficiency, and better-than-expected profitability across streaming businesses. Industrials posted an impressive 19.3% gain, benefiting from reshoring trends, infrastructure spending, and solid order backlogs in transportation, aerospace, and manufacturing."
"Against that backdrop, energy delivered a respectable but below-market return-and that relative underperformance may be more important for investors looking ahead to 2026 than the headline number suggests. Energy Sector: Moderate Gains, Wide Dispersion The energy sector finished 2025 up 7.9%. That result was solid given the late-year pullback in crude prices, but it masked significant differences across industry segments."
The S&P 500 achieved a 16.4% total return in 2025, marking a third consecutive year of double-digit gains and positive returns across all sectors. Growth-oriented sectors outperformed, supported by a more resilient consumer than expected. Technology led with a 24.6% gain driven by investment in artificial intelligence, semiconductors, and cloud infrastructure. Communication Services rose 23.1% on digital advertising strength and streaming profitability. Industrials gained 19.3% from reshoring, infrastructure spending, and robust order backlogs. Utilities returned 16.0% amid shifting rate expectations. Energy rose 7.9% but showed wide dispersion across industry segments.
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