‘You Had to Be Brave’: Wall Street Remembers a Wild 2025

Group 1 - The launch of DeepSeek's AI program is perceived as a significant threat to the US tech sector, leading to a dramatic drop in Nvidia's stock price by 17%, which wiped out nearly $600 billion in market value [1] - Despite initial fears, the Nasdaq 100 Index rebounded to a record high within a month, achieving a 21% gain in 2025, while Nvidia's stock rose by 40% during the same period [7] - The volatility in the market was influenced by the Trump administration's trade policies, which created uncertainty and led to significant market fluctuations [2][10] Group 2 - Portfolio managers reacted to market volatility by adjusting their stock holdings, with some firms increasing their allocations to US stocks and corporate bonds [11] - The S&P 500 experienced a significant recovery, surging 9.5% in a single day after Trump announced a pause on tariffs, marking its largest one-day increase since October 2008 [15] - The AI boom has continued to thrive despite concerns over valuations, with expectations that the S&P 500 will rise for a fourth consecutive year, indicating a positive outlook for the market [27][28]