Investors Have Much to Be Thankful for in 2025

by Larry Adam of Raymond James, 11/24/25

Key takeaways

  • The S&P 500 index sails past the third year of the bull market
  • Tech grabs the spotlight, but seven S&P 500 sectors have hit all-time highs
  • 10 out of 11 S&P 500 sectors are currently posting year-to-date gains

With Thanksgiving around the corner, there’s so much to be thankful for in 2025, especially for investors. After a challenging start to the year, the economy and markets regained their footing quickly, with nearly all asset classes on track for solid gains heading into year-end. Looking ahead, there are reasons for optimism to continue into 2026 as well. In the spirit of Thanksgiving, we’ve compiled ten economic and market-related things we’re most thankful for in 2025 – because gratitude isn’t just for the dinner table; it belongs in our portfolios, too.

One stock market recovery since liberation day: After a volatile start to the year, equity markets have staged an impressive comeback. Since the April lows, when trade war turbulence and recession fears peaked, the S&P 500 surged 38%, marking one of the strongest six-month runs in history – before the recent pullback. If the S&P 500 regains its momentum as we head into year-end, we could see a rare three-peat – three consecutive years of 20+% returns, a feat last achieved during the 1995-1999 bull market.

About two percent GDP growth: Liberation Day (April 2) may have sparked recession fears, but economic growth proved resilient, likely ending the year just shy of 2%. Tariffs, initially seen as a major threat to corporate America, turned out to be less damaging than expected. Meanwhile, a game-changing leap in technology – artificial intelligence (AI) – helped give the economy a lift.

Three years of the current bull market: The S&P 500 just celebrated the third anniversary of the bull market – up an impressive 83% since it began. While sharp market swings and growth worries could have thrown things off track, earnings bounced back quickly after a brief dip as the economy sidestepped a recession. The good news: earnings continue to climb. With solid fundamentals and expectations for stronger economic activity next year, the outlook remains positive for the bull market to carry into year four.

First record for small caps in four years: Small caps had not joined other major US equity indices in posting multiple new records since the bull market began. However, that changed in late September when they finally broke through with the Russell 2000 hitting its first record high in four years. The catalyst: hopes for Fed rate cuts and perceived bargain valuations proved too tempting to ignore.

More than fifty percent participating in 401(k) plans: Tax-advantaged savings plans are one of the most effective tools for building long-term wealth. Rising participation signals a stronger focus on retirement readiness, where small changes today can lead to significant benefits over time. This trend underscores investors’ commitment to achieving their future financial goals.

Oil prices below sixty dollars per barrel: A near-record supply increase and sluggish demand, particularly in China, have been major factors driving oil prices lower year-to-date. Oil prices (WTI) now trade below $60 per barrel, down from an $80 peak earlier in the year. This is important as falling gas prices are now giving consumers some welcome relief on their everyday expenses. With the national average of gas prices on the cusp of breaking below $3/gallon, history suggests this could give consumer confidence a boost.