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Cryptopolitan 2025-12-31 12:24:58

S&P 500 index ends 2025 split between extreme winners and clear losers

The S&P 500 is set to close 2025 with a 17% rally YTD, thanks mostly to AI and Nvidia, the most valuable company on earth and the year’s best performer globally for the third time in a row. Money followed chips, data, and the physical infrastructure needed to run large models, so most stocks tied to servers, storage, cooling, and power were on a bull run. Still though, the S&P 500 index ended the year split between extreme winners and clear losers. Because though iconic as it was, this year did not lift all boats. AI spending made chips, data storage, and infrastructure stocks best-performers The AI trade expanded beyond graphics chips inside the S&P 500. Microsoft, Amazon, Alphabet, and Meta pledged more than $440 billion in combined spending over the next twelve months. The cash targets data centers, networking gear, storage systems, and cooling capacity. Sandisk, Western Digital, and Seagate landed among the strongest gainers. All three sell storage used inside large-scale data centers. Their shares climbed as cloud operators locked in supply deals. AI workloads pushed demand for faster and larger storage pools. That demand fed directly into earnings growth. Within the S&P 500, these names outperformed most traditional tech peers. New additions also played a role. Robinhood, Sandisk, AppLovin, and Carvana joined the S&P 500 during 2025. Each posted triple-digit percentage gains and ranked inside the top twenty performers. Index inclusion increased trading volume and passive fund demand. That flow supported prices during pullbacks. Not every new entrant benefited. Trade Desk posted the worst return in the index, sliding close to 70%. Block fell more than 20%. Coinbase dropped over 6%. Even inside the S&P 500, index entry did not guarantee upside. Single-stock surges define the year’s biggest winners Palantir delivered another triple-digit year, its third in a row, as retail investors stayed adamantly active in the name. The PLTR stock now trades above 180 times forward earnings, a valuation that places it behind only Tesla and Warner Bros. Discovery inside the S&P 500. The multiple expanded as momentum funds stayed involved. Warner Bros. Discovery surged nearly 175% during 2025. Takeover speculation drove the move. The company formally put itself up for sale in October. Paramount Skydance and Netflix emerged as the two main bidders. Both worked to secure financing. The board leaned toward the Netflix proposal. Reports said the board planned to reject Paramount’s offer. Larry Ellison, Oracle chairman and father of Paramount chief executive David Ellison, personally backed the Paramount bid. The bidding war kept shares volatile but elevated. Consumer staples ranked among the worst performers in the S&P 500. Tariffs, inflation, and worries about household spending weighed on demand. Clorox, Lamb Weston, Campbell’s, and Constellation Brands all landed in the bottom twenty. Chipotle dropped nearly 40% after two strong years. Rising costs and slower traffic hit margins. Retail stocks Deckers Outdoor fell almost 50%, ending a nine-year streak of gains, and Lululemon slid close to 45%, after struggling through restructuring and leadership changes. Elliott Investment Management built a stake exceeding $1 billion, but the shares stayed under pressure. Managed care also underperformed. Molina Healthcare fell over 40% for a second straight year. UnitedHealth and Centene dropped more than 30%, placing them among the worst names in the S&P 500. UnitedHealth suffered its worst day since 1998 in April after cutting its forecast. The stock plunged 22% in one session. Sign up to Bybit and start trading with $30,050 in welcome gifts

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