2025 was a year of constant repricing. Trade, fiscal risks, and shifting rate expectations kept markets volatile. AI also shifted from “more compute” to “more efficiency,” resetting tech valuations.
ETO Markets highlights ten events that defined 2025, helping investors cut through the noise and spot real trends and risks.
DeepSeek R1 Flips the AI Compute Trade
Early in 2025, DeepSeek open-sourced its R1 model. It delivered strong results with less compute, reshaping how investors viewed China tech. The “HK Tech Seven” became a focal point, and the Hang Seng TECH Index led global equities for a stretch.
Quantum Computing Goes Mainstream
In February, UNESCO launched the International Year of Quantum Science and Technology. As big tech reported progress in chips and computing, investors traded quantum-linked assets more often. The market started pricing quantum as a real frontier theme, not just a long-term idea.
Europe ReArms: €800bn Defense Wave
The EU rolled out “ReArm Europe / Readiness 2030.” It loosened fiscal rules and backed higher defense spending. Defense became a core policy priority. Markets had to rethink Europe’s fiscal outlook and geopolitical risk.
Trump Tariff Shock Triggers Global Stock Selloff
After taking office, President Trump revived tariffs. In April, the White House announced broad reciprocal tariffs. Global equities fell sharply, and risk-off demand jumped. Investors faced one of the year’s most volatile periods.
Stablecoins Go Legal, BTC Tops $120k
In mid-July, the U.S. signed the GENIUS Act. In early August, Hong Kong’s Stablecoin Ordinance took effect. Clearer rules pushed crypto into the mainstream, and Bitcoin hit new highs. Circle’s IPO also surged, reaching nearly $300.
Fed Cuts Rates 75bps Amid Politics
The FED cut rates three times in 2025, in September, then again in November and December. In December, it restarted short-term Treasury bill purchases. Politics and leadership rumors kept the rate outlook unstable ahead of Powell’s May 2026 exit.
Buffett Retires, Berkshire Hands Off to Abel
In November, Warren Buffett confirmed he would step down as Berkshire Hathaway CEO on December 31. Greg Abel will take over as CEO. Buffett will remain Chairman and a major shareholder.
BOJ Hikes to 0.75%, Yen Anchor Shifts Higher
In mid-December, the BOJ raised its policy rate from 0.5% to 0.75%. That put Japan at its highest rate level in about 30 years. The BOJ also signaled more hikes could follow in 2026, lifting the yen’s pricing anchor.
S&P Near 7,000, VIX Wakes Up
In the first half, AI capex and strong earnings pushed U.S. tech to fresh highs. Then valuations ran hot and the rally narrowed. The market started demanding real profit proof. Volatility picked up, and the market turned more fragile.
Gold and Silver Surge, Safe-Haven Trade Returns
Around Christmas, precious metals surged. Gold broke $4,500/oz and silver cleared $80/oz, their strongest levels in over a decade. Full-year gains were about 72% for gold and 167% for silver. The main support was steady long-term buying from central banks and ETFs.
2026 Setup: New Anchors, New Risks
2025 repriced markets through policy shifts, rapid tech cycles, and fast-moving capital. In 2026, the focus is how these forces ripple through rates, FX, commodities, and equities.
ETO Markets will keep flagging key turning points and cutting through the noise with clear, structured signals for disciplined decisions in volatile markets.
Disclaimer
This material may contain forward-looking statements related to market trends, company strategies, or product expectations. Such statements are based on information currently available and reasonable assumptions. Actual outcomes may differ significantly due to changes in market conditions, regulations, or other influencing factors.
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