Happy Monday! What a year it has been for stocks. The market made a new all-time high every time you checked your portfolio. From the springtime shakeout driven by tariff policy concerns, when the S&P 500 hit a key April low of 4,835.04, the index has bounced back over 40%, closing at 6,929.94 as of Friday (December 26)
The index has now logged a year-to-date return of approximately 18%. That, however, may look modest when compared to 2024's above-average gain of 23.31%.
That said, the market has entered the traditional Santa Claus Rally period, which includes the final five trading days of the year (December 26, 29, 30, 31, and January 2). This is one of the most closely watched seasonal patterns in market history. According to Yahoo Finance data, since 1969, the S&P 500 ($SPX) (SPY) has averaged gains of 1.3% during this seven-day window, with positive returns occurring roughly 78% of the time
So, why does this rally happen?
There are multiple potential reasons, including year-end portfolio adjustments, tax-loss harvesting, pension fund rebalancing, and general holiday optimism. This year, however, Tuesday's FOMC meeting minutes stand out as the key near-term catalyst that could set the tone for the Santa Claus rally and how the market positions itself heading into 2026
Despite Friday's slight dip, the market still closed the week on a positive note, with the S&P 500 up 1.4% and the Nasdaq up 1.2%.
The Deep Dive
This week, we're revisiting the 2025 market through five visual themes:
- The best-performing sectors that led the market's growth in 2025
- Top 10 stocks in the S&P 500. Do you own any?
- Gold and silver just had a monster rally
- 66% of S&P 500 constituents are up for the year
- Tech's dominance in the S&P 500 surges to an all-time high
Let's take a closer look…
1. The best-performing sectors that led the market's growth in 2025
While AI dominated the headlines, basic materials actually led the pack, posting 38.32% YTD gains. The credit goes largely to a multi-metal rally driven by gold, silver, and copper.
Next came communication services, up 33.93% YTD, followed by technology, which delivered 21.22%.
Among non-tech sectors, industrials (19.96%), financial services (18.32%), and healthcare (15.83%) turned in solid performances. On the other end of the spectrum, real estate and consumer defensives were the top laggards.
2. Top-10 stocks in the S&P 500. Do you own any?
Surging demand for memory and storage solutions in AI data centers pushed several hardware names to extraordinary gains this year. Companies like SanDisk (+594.58%), Western Digital (+302.78%), Micron Technology (+238.39%), and Seagate (+231.62%) posted eye-popping returns.
3. Gold and silver just had a monster rally
Global uncertainty, tariff tensions, and growing valuation concerns fueled a powerful rally in precious metals. Gold (GC=F) and silver (SI=F) both surged to fresh historical highs as investors rotated toward perceived safe havens.
Meanwhile, copper (HG=F) hit its own high-water mark, driven by supply-chain disruptions and ongoing tariff-policy uncertainty.
4. 66% of S&P 500 constituents are up for the year
According to YCharts data, while tech continues to dominate headlines, market strength in 2025 has been broadly distributed. Roughly 66% of S&P 500 constituents are in positive territory for the year
Notably, 99 non-tech companies are up more than 25% YTD, and 313 S&P 500 stocks are trading above their 200-day moving average, signaling solid underlying momentum.
5. Tech's dominance in the S&P 500 surges to an all-time high
While a rising tide has lifted many boats, a closer look reveals an unprecedented level of concentration in market returns. Tech megacaps powered much of the rally in 2025, with just five stocks, Nvidia, Alphabet, Broadcom, Microsoft, and Apple, accounting for nearly 45% of the S&P 500's total returns.
That level of concentration raises real questions about who's driving the market, how risky it's becoming, and whether it can hold up in 2026.
Before we sign-off
Markets move not just on data, but on how investors interpret them. In each of the stories we cover, it all comes down to market expectations and sentiment. When sentiment runs ahead of fundamentals, what follows is volatility.
At AlphaPro, we track the voice behind the numbers and tone of earnings calls, policy speeches, and analyst commentary. Our Earnings Sentiment Score helps you cut through the noise and see how executives and policymakers are shaping narratives in real time.
Same time next week? See you then.
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