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U.S. stocks are ending 2025 near record highs as an AI-driven spending boom powered major tech gains, led by Nvidia, Broadcom, and Alphabet, even as analysts warn of growing economic strain beneath the rally, according to The Wall Street Journal.
Transcript
00:00It's Benzinga bringing Wall Street to Main Street.
00:03The U.S. stock market is closing out 2025 near record highs, according to The Wall Street Journal.
00:08The S&P 500 is up 17 percent and the Nasdaq has gained 21 percent as fears tied to Trump's
00:16tariffs and sell America trades faded within weeks. Tariff exemptions, trade deals and an
00:22AI-driven capital spending boom supported growth and limited inflation effects. Tech stocks led
00:28gains with NVIDIA up 40 percent, Broadcom up 51 percent, Alphabet up 66 percent, AMD up
00:3678 percent, Palantir up 139 percent, and Micron up 248 percent. Broadcom and The Magnificent
00:44Seven now make up 40 percent of the S&P 500's market capitalization, more than double their
00:50share a decade ago. Rich asset owners continue to spend heavily, while analysts warn that
00:55financial strain on lower and middle income Americans could destabilize the economy.
01:01Inflation remains elevated, job growth has slowed to a near standstill, and unemployment is rising.
01:07As investors look to next year, many are rotating out of richly valued tech stocks into banks,
01:13materials and health care, while others are shifting toward overseas markets that outperformed
01:17the U.S. For all things money, visit Benzinga.com.
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