S&P 500 Closes at Record 6,200 Points in Year-End Rally
The S&P 500 has closed at a record 6,200 points, capping an exceptional year for US equities. The index has gained 28% in 2025, driven by AI enthusiasm, strong corporate earnings, and Federal Reserve rate cuts.
By Aisha Patel - Health & Science Correspondent
Last Updated: December 16, 2025
S&P 500 reaches new all-time high
Record Performance
The S&P 500 closed at 6,200, marking its 52nd record high of 2025. The year's 28% gain ranks among the best in the index's history, with technology and healthcare sectors leading performance.
The Nasdaq Composite has gained 35%, while the Dow Jones Industrial Average is up 22%.
Driving Factors
AI-related stocks have contributed disproportionately to gains, with NVIDIA, Microsoft, and Google parent Alphabet together adding over 1,000 points to the index. Corporate earnings have beaten expectations for five consecutive quarters.
Fed rate cuts have provided additional support, reducing borrowing costs and making equities more attractive relative to bonds.
2026 Outlook
Wall Street strategists project continued gains in 2026, though at a more modest pace. Average year-end targets suggest 8-12% upside from current levels.