it's been a roller coaster year for the stock market in 2025. since the beginning of the year, there has been a flurry of unexpected news that has kept investors on the edge of their seats. Here's a recap of the year's biggest stories, with a stock market outlook for 2025.

january shook the stock market with the Dipshit Shock

the first big story of the year broke in late January, when Chinese startup DeepSeek unveiled an AI model that could perform at a tenth of the cost of open AI. The announcement sent the stock prices of some of the biggest U.S. tech companies in the AI industry plummeting.

nvidia's stock price, in particular, shocked the market by falling by about 16 percent in a single day, and AI semiconductor stocks such as Broadcom and AMD were also shaken in a chain reaction. I remember many investors were nervous at the time, revisiting the argument that AI semiconductor stocks were overvalued.

trump's tariffs and the global stock market shock

in early April, the Trump administration issued an executive order to impose large-scale reciprocal tariffs on allies and adversaries alike. The news sent global stocks tumbling, and the U.S. stock market was not spared from the fall, with the S&P500 losing more than 10 percent in two days.

you can read more about the specifics of Trump's tariff policy in this article.

three Fed rate cuts and liquidity expectations

heading into the second half of the year, the mood was different. the US Federal Reserve resumed cutting its benchmark interest rate in September, and between October and December, the Fed cut the US benchmark interest rate three times in total. This, coupled with news that the Fed was also reviewing its quantitative easing policy, spread expectations of liquidity in the market.

as the rate-cutting cycle kicked into high gear, risk appetite was revived, setting the stage for the subsequent rally in equities.

what it means for Nvidia's $5 trillion market cap

at the end of October, Nvidia reached a historic milestone: the company's market capitalization surpassed $5 trillion for the first time ever, as the company's strong demand for AI started to pay off. This is more than just a number.

It's a sign that the hype around the AI industry has begun to materialize into real returns, and it's sparked a conversation about re-rating AI stocks.

the era of KOSPI 4000 and Samsung Electronics KRW 100,000

in late October, the Korean stock market also witnessed a historic scene. the KOSPI broke through the 4,000 mark for the first time ever, thanks to rising shares of Samsung Electronics and SK Hynix, which were up about 70 percent from the beginning of the year, driven by rising demand for AI semiconductors and expectations of a recovery in the semiconductor industry.

samsung Electronics' stock price surpassed 100,000 won, ushering in the so-called 100,000-electron era, and continued its upward trend through the end of the year, reaching 11,9500 won as of the close on December 29th.

check out our in-depth analysis of the semiconductor industry outlook in this related article.

implications for investment strategies in 2026

summarizing the stock market issues of 2025 gives us some hints for investment strategies in 2026. The pace of AI technology advancements, the direction of monetary policy in each country, and geopolitical risks will remain key variables. In particular, we'll be keeping a close eye on the continued performance of the AI semiconductor sector and the Fed's further policy actions.

you can also check out our stock market forecast for 2026 in this related article.

frequently asked questions

Q. what were the biggest issues in the stock market in 2025?

A. The Dipshit shock in January, the Trump tariff shock in April, and the Fed's three rate cuts in the second half of the year were the biggest stories. In particular, Nvidia's $5 trillion market cap and the KOSPI 4000 breakout changed the tone of the second half of the year.

Q. what was the DeepSeek shock?

A. The Chinese startup DeepSeek announced a low-cost, high-performance AI model that caused U.S. AI big tech stocks to plummet. nvidia's stock dropped about 16 percent in a single day, shocking the market.

Q. why did the KOSPI break through 4000?

A. Increased demand for AI semiconductors and expectations of a recovery in the semiconductor industry have pushed up the valuations of leading semiconductor stocks such as Samsung Electronics and SK Hynix.

Q. what is your outlook for the stock market in 2026?

A. Advancements in AI technology, the Fed's monetary policy, and geopolitical risks are key variables. It will be important to continue to monitor the AI semiconductor sector's performance.

closing thoughts

it's been a dramatic year for the stock market, starting with the Dipshock and ending with the KOSPI at 4000 and 100,000. it seems like it was just a few days ago that the year was over. Thank you for a great year, and we wish you the best of luck with your investments in 2026.

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