The U.S. stock market had another strong performance in 2025. The S&P 500 rose by approximately 18% overall, marking the third consecutive year of double-digit growth, largely driven by excitement surrounding AI technologies.
However, a closer look reveals a starkly uneven distribution of gains. While a select few high-performing stocks excelled, many others either stagnated or fell. Finder.com analyzes last year’s sector performance and highlights these disparities.
Even within identical industries, the performance varied drastically as some companies thrived while others faced losses. The overall market rally was propelled by just a few key players, instead of a broad range of successes.
A limited group of AI-focused companies, particularly in sectors like data storage, memory chips, and semiconductors, significantly influenced market trends, leaving numerous worthy firms behind or dealing with substantial losses.
Choosing the right stocks was particularly challenging this year, with a monthly single-stock dispersion averaging 27.4% annualized, the highest level since 2008. This indicates that stock returns fluctuated widely, contradicting the overall positive market sentiment.
Data concerning sector averages and the leading and lagging performers illustrates the extent of the year’s imbalances. The general market performance overshadowed stark contrasts across the 11 primary sectors, with Information Technology leading at an impressive average gain of 32.9%, particularly fueled by the AI boom.
