NEW YORK, New York - U.S. stocks spilled red ink on Wednesday to mark New Year's Eve, with all the major indcies closing in negative territory. Although losing ground over the past three days, all the major indices finished the year close to record highs. This despite a mid-year rout, triggered in April by President Trump's Liberation Day annoucement which started a  trade war which played out over many months.

"There were lessons learned on the part of the administration that smarter, more narrow tariffs with a gradual implementation is what the market can absorb," Keith Buchanan, senior portfolio manager at Globalt Investments told CNBC Wednesday. "The market is now, because of 2025, able to look past any tariff shifts in 2026, banking on the administration remembering those lessons from 2025 and also corporate America being able to adjust on the fly in a way that continues to preserve margins."

The Standard and Poor's 500 finished the session lower, falling 50.74 points, or 0.74 percent, to close at 6,845.50. The benchmark traded in a narrow range, touching an intraday low of 6,844.55 and a high of 6,901.42, as trading volumes remained subdued. Despite the day's decline, the index ended the year near record territory, having reached a 52-week high of 6,945.77.

The Dow Jones Industrial Average also retreated Wednesday, shedding 303.77 points, or 0.63 percent, to end at 48,063.29. The blue-chip index fluctuated between a low of 48,050.88 and a high of 48,394.51 during the session, reflecting cautious sentiment among investors wrapping up positions before the new year.

Technology stocks were among the weakest performers, pushing the NASDAQ Composite down 177.09 points, or 0.76 percent, to 23,241.99. The decline came amid light trading volumes and profit-taking in several large-cap technology names following a strong year for the sector.

Overall, Wednesday's session reflected typical year-end trading conditions, with thin volumes and cautious positioning ahead of the new year, capping off a year marked by strong gains across major U.S. equity markets despite the final 3 day pullback

Clean sweep for U.S. dollar Wednesday as major currencies buckle at year-end

Major currencies traded lower on Wednesday as the U.S. dollar firmed against most counterparts, while commodity-linked currencies came under renewed pressure.

The euro edged lower against the greenback, with the euro–U.S. dollar pair slipping 0.08 percent to trade at 1.1738. The single currency remained subdued amid cautious sentiment across European markets.

The U.S. dollar strengthened against the Japanese yen, with USD/JPY rising 0.33 percent to 156.85. The move reflected continued demand for the dollar as investors weighed interest rate differentials between the United States and Japan.

Against the Canadian dollar, the greenback also advanced. USD/CAD climbed 0.19 percent to 1.3721, supported by softer oil prices and steady demand for the US currency.

Sterling weakened modestly, with the British pound–U.S. dollar exchange rate slipping 0.08 percent to 1.3455. The pound remained under pressure amid lingering concerns over the UK economic outlook.

The U.S. dollar gained ground against the Swiss franc, with USD/CHF up 0.21 percent at 0.7931, as investors leaned toward the dollar in a slightly risk-averse trading environment.

Commodity-linked currencies underperformed. The Australian dollar fell 0.31 percent against the US dollar to 0.6673, while the New Zealand dollar recorded a sharper decline, sliding 0.65 percent to trade at 0.5754 against the greenback.

Overall, Wednesday's foreign exchange session reflected steady demand for the US dollar, while risk-sensitive currencies softened as traders remained cautious ahead of key economic data and central bank signals.

Stock markets in Europe gain ground on last trading day of year

Global share markets delivered a mixed performance at Wednesday's close, as gains across parts of continental Europe and Asia were offset by declines in Toronto, London, Hong Kong and several regional markets.

In Canada, the S&P/TSX Composite Index mirrored the softer tone in U.S. markets, closing down 153.50 points, or 0.48 percent, at 31,712.76. The index was weighed down by weakness in resource and financial stocks as investors also moved to reduce exposure ahead of the holiday break.

In London the FTSE 100 ended slightly lower, slipping 9.33 points, or 0.09 percent, to close at 9,931.38. The index traded between an intraday low of 9,916.70 and a high of 9,950.11, remaining close to its recent record levels.

Germany's DAX outperformed regional peers, climbing 139.29 points, or 0.57 percent, to finish at 24,490.41. The benchmark reached a session high of 24,527.94 and continues to trade near its 52-week peak of 24,771.34.

In France the CAC 40 moved in the opposite direction, falling 18.65 points, or 0.23 percent, to 8,149.50, while the EURO STOXX 50 rose 39.70 points, or 0.69 percent, to 5,791.41.

Elsewhere in the region on Wednesday, the Euronext 100 Index edged down 0.84 points, or 0.05 percent, to 1,720.69, while Belgium's BEL 20 was marginally higher, gaining 0.72 points, or 0.01 percent, to 5,078.43.

Asian markets were broadly weaker. Hong Kong's Hang Seng Index dropped sharply, falling 224.06 points, or 0.87 percent, to close at 25,630.54 after touching an intraday low of 25,554.31.

In Singapore the STI Index also declined, easing 9.17 points, or 0.20 percent, to 4,646.21.

In Japan on Wednesday, the Nikkei 225 finished lower by 187.44 points, or 0.37 percent, at 50,339.48, while South Korea's KOSPI Composite Index lost 6.39 points, or 0.15 percent, to end at 4,214.17.

Taiwan's TWSE Capitalization Weighted Stock Index stood out in the region, surging 256.47 points, or 0.89 percent, to 28,963.60, closing just below its session high.

Mainland China's SSE Composite Index posted modest gains, rising 3.72 points, or 0.09 percent, to 3,968.84.

In Indonesia the IDX Composite edged higher by 2.68 points, or 0.03 percent, to 8,646.94, while Malaysia's FTSE Bursa Malaysia KLCI fell 4.42 points, or 0.26 percent, to 1,680.11.

Australian equities ended slightly weaker Wednesday. The S&P/ASX 200 slipped 2.80 points, or 0.03 percent, to 8,714.30, while the broader All Ordinaries index lost 3.60 points, or 0.04 percent, to close at 9,018.80. In New Zealand, the S&P/NZX 50 Index Gross was flat, inching up just 0.29 points, or 0.00 percent, to 13,548.42.

In South Asia, India's S&P BSE Sensex advanced strongly, gaining 545.52 points, or 0.64 percent, to finish at 85,220.60, after touching an intraday high of 85,437.17.

Elsewhere, in the Middle East, Israel's TA-125 index declined 27.25 points, or 0.74 percent, to 3,663.54. In Egypt the EGX 30 Price Return Index rose 139.00 points, or 0.33 percent, to 41,829.00, while in Africa,  South Africa's Top 40 USD Net TRI Index fell 37.27 points, or 0.53 percent, to 7,004.80.

Overall, Wednesday's session reflected cautious investor sentiment globally, with selective strength in European and Asian technology-heavy markets tempered by profit-taking across several major regional benchmarks.

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

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