The growth of the S&P 500 index in 2025, at 15.9%, exceeded analyst estimates of an approximate 10% gain amid a global landscape of geopolitical tensions, persistent impacts from fluid U.S. tariffs, and the emergence of artificial intelligence (AI) in nearly all aspects of business.

The performance of the U.S. stock markets was a clear bright spot during the first year of Donald J. Trump’s second term as president. The Dow Jones average increased by 13.3% in 2025, ending the year at 48,367.06, and the Nasdaq grew by 21.7% last year to 23,474.35.

However, U.S. economic issues ranging from surging corporate bankruptcies and persistent inflation to sluggish job growth, weighed on all the market positivity. From the perspective of consumers, with an increasing number working multiple gigs to pay the bills, early January economic confidence was down almost 25 percent from Jan. 2024, despite perceived economic improvement over the Nov.-Dec. timeframe. Consumer spending is trending up on “cheap thrills” and necessary services, according to The Conference Board’s Consumer Confidence Index report in late December but spending on expensive and “highly discretionary” activities is down.

During 2025’s final quarter, as more U.S. consumers tapped credit and “Buy Now, Pay Later” services for their holiday purchases, the footwear indexes were mixed. Retail declined, and the Brand segment grew. The 4.5% quarterly increase for the 17-company Brand Index exceeded the Q4 gains of the S&P 500 (+1.9%), Dow (+3.1%), and the Nasdaq (+1.6%) for the 13 weeks ended Dec. 31.

Stronger fortunes for the footwear industry in 2026 are likely tied to industry behemoths in Nike and VF Corp. forging forward with their turnaround plans, and their smaller, recently successful competitors, such as Deckers and On Holding, continuing their momentum.

Read the rest of the Business Report Quarterly here.