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The year 2025 was scary good for investors.It was scary because the U.S. stock market plunged to several historic drops on worries about everything from President Donald Trump’s tariffs to interest rates to a possible bubble in artificial-intelligence technology. In the end, though, it was a good year for anyone with the stomach to stick through the swings.S&P 500 index funds, which sit at the heart of many savers’ 401(k) accounts, returned nearly 18% in 2025 and set a record high on Dec. 24. It was their third straight year of big returns.Here’s a look at some of the surprises that shaped financial markets along the way: Tariff tremors Trump dropped the biggest surprise on “Liberation Day” in April, when he announced a sweeping set of tariffs that were more severe than investors expected.It immediately triggered worries about a possible recession and spiking inflation. The S&P 500 plunged nearly 5% on April 3 for its worst day since the 2020 COVID crash. The very next day, it dropped 6% after China’s response raised fears of a tit-for-tat trade war.The tariffs’ impact went beyond the stock market. The value of the U.S. dollar fell, and fear even shook the U.S. Treasury market, which is seen as perhaps the safest in existence.Trump eventually put his tariffs on pause on April 9 after seeing the U.S. bond market get “queasy,” as he put it, which sent relief through Wall Street. Since then, Trump has negotiated agreements with countries to lower his proposed tariff rates on their imports, helping calm investors’ nerves.Wall Street motored higher through a remarkably calm summer thanks to euphoria around artificial-intelligence technology and strong profit reports from companies. The market also got a boost from three cuts to interest rates by the Federal Reserve.Trade worries can still cause havoc in markets, and Trump sent stocks spiraling as recently as October with threats of higher tariffs on China. Trump and the Fed Another surprise was how hard, and how personally, Trump lobbied to get the Federal Reserve to lower interest rates.The Fed has traditionally operated separately from the rest of Washington, making its decisions on interest rates without having to bend to political whims. Such independence, the thinking goes, gives it freedom to make unpopular moves that are necessary for the economy’s long-term health.Keeping interest rates high, for example, could slow the economy and frustrate politicians looking to please voters. But it could also be the medicine needed to get high inflation under control.As inflation stubbornly remained above the Fed’s 2% target, the central bank kept rates steady through August. This drew Trump’s ire even though it was his own trade policies that were driving fears about inflation higher.Trump continuously picked on Fed Chair Jerome Powell, even giving him the nickname “Too Late.” Their tense relationship reached a head in July when Trump, in front of cameras, accused Powell of mismanaging the costs of a renovation of the Fed’s headquarters. Powell, in turn, shook his head.Even though Wall Street loves lower rates, the personal attacks caused some queasiness in financial markets because of the possibility of a less independent Fed. Powell’s turn as Fed chair is set to expire in May, and the wide expectation is that Trump will choose a replacement more likely to cut rates. Good but not first “America first” didn’t extend to global markets. Even as U.S. stocks soared to another double-digit gain, many foreign markets fared even better.The technology frenzy that helped fuel gains for the S&P 500 and the Nasdaq composite drove Korea’s KOSPI higher in 2025, enjoying its biggest gain in more than two decades. South Korea is a technology hub and companies including Samsung and SK Hynix surged amid the focus on artificial intelligence investments and advancements.Japan’s Nikkei 225 had a double-digit gain for a third straight year. Besides the focus on AI and the technology sector, the gains were boosted in October and November following national elections and plans for a $135 billion stimulus package.European markets also had a strong year. Germany’s DAX got a boost as the government announced plans to ramp up spending on infrastructure and defense, which could fuel economic growth in Europe’s largest economy.The European Central Bank spent the first half of the year cutting interest rates, which helped give financial markets across Europe a boost. France’s CAC 40 was a laggard, but still gained more than 10%. Crypto’s ups and downs Even with a reputation for volatility, cryptocurrencies still managed to surprise market watchers.Bitcoin dropped along with most other assets early in the year as Trump’s trade policies scared investors away from riskier investments.The most widely used cryptocurrency roared back as the White House and Congress threw their support behind digital assets and the Trump family launched a number of crypto ventures. Retail investors joined in by pouring money into bitcoin ETFs, stock-like investments that allowed them to benefit from the run-up in price without having to actually store bitcoin in digital wallets. Some companies, notably Strategy Inc., made buying and holding crypto the crux of their business and their stocks jumped.Bitcoin hit a high around $125,000 in early October. But, almost as quickly, digital assets tanked as investors worried the prices for shining stars such as tech stocks and crypto had jumped too high. As of Wednesday afternoon, bitcoin traded around $87,700, down roughly 30% from the peak and 6% below where it started the year. What’s ahead? Many professional investors think more gains could be ahead in 2026.That’s because most expect the economy to plod ahead and avoid a recession. That should help U.S. companies grow their profits, which stock prices tend to track over the long term. For companies in the S&P 500, analysts are expecting earnings per share to rise 14.5% in 2026, according to FactSet. That would be an acceleration from the 12.1% growth estimated for 2025.But some of last year’s concerns will linger. Chief among them is the worry that all the investment in artificial-intelligence technology may not produce enough profits and productivity to make it worth it. That could keep the pressure on AI stocks like Nvidia and Broadcom, which were responsible for so much of the market’s gains last year.And it’s not just AI stocks that critics say are too pricey. Stocks across the market still look expensive after their prices climbed faster than profits.That has strategists at Vanguard estimating U.S. stocks may return only about 3.5% to 5.5% in annualized returns over the next 10 ears. Only twice in the last 10 years has the S&P 500 failed to meet that bar.At Bank of America, strategist Savita Subramanian says the S& P 500 could rise by less than half as much as profits do in 2026. She said that could be a result of companies reducing stock buybacks, as well as global central banks implementing fewer rate cuts.__Reporter Damian Troise contributed. Stan Choe, AP Business Writer
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E-Commerce
The past year was a landmark for AI proliferation, with sweeping implications for virtually every area of business and life. But with progress came peril. We saw cyberattacks explode in number and sophistication, outmaneuvering legacy security defenses to create record damage. These trends will only accelerate from here, and its not enough for teams to simply brace for impact. Instead, organizations must anticipate whats ahead and reimagine their security stacks, thinking about how to preempt attacks and optimizing their workflows. Thinking about cybersecurity in the new year, its critical to have a clear vision and get to work fast to meet the moment. Here are three trends to watch. 1. Eyes on the evolving threat landscape In 2026, the mass personalization of cyberattacks will disrupt the classical kill chain model, which relies on observing and then reacting to stop threats. Attackers will leverage AI to understand business’s unique vulnerabilities and craft personalized, novel software for each enterprise. This means every organization will see a massive rise in sophisticated, tailored attacks that are not known to the majority of their current security tools, pitting them in a race against time to spot the attack and respond before sustaining widespread damage. Adding AI to reactive tools will help, but will be woefully insufficient to counter this new onslaught. Instead, this shift will require security teams to develop wholly new approaches to preemptively mitigate and avoid these highly personalized threats. AI will also lead to the development of malware that can adapt and evade defensive measures, posing a significant threat to cybersecurity teams. These make it less likely that the novel attacks mentioned above will be detected before they can do large scale damage. AI-powered, autonomous malware will be capable of changing code and behavior to avoid detection, making it harder for security systems to identify and neutralize it. The emergence of autonomous malware will mark a new era in cyberthreats, where AI-driven attacks become increasingly sophisticated and resilient and put further stress on existing security solutions that rely on a detect and respond model to be effective. Compounding these threats, the problem of deepfakes will significantly worsen. The proliferation of deepfakes will increase misinformation and social engineering, leading to major breaches and higher success rates for scams and theft. As AI technology advances, the creation of realistic deepfakes will become easier and more widespread. This will result in a proliferation of fake videos and audio recordings that can be used to deceive individuals and organizations, undermining trust and security. This will coincide and often be combined with a new generation of AI-driven email, text and social media-based attacks. These attacks are tailored to individuals and nearly indistinguishable from legitimate communication, enabling highly personalized, real-time social-engineering campaigns. Relying on humans as a last line of defense has long been a tenuous approach. Against threats this advanced, that approach collapses. Modern security demands automated, adaptive defenses that remove the burden from individuals. 2. Protect an expanding attack surface IoT and IT devices (networking and security infrastructure) will become a bigger target for attacks due to the ease of creating and deploying attacks against them. The proliferation of smart devices in businesses and homes presents an opportunity for attackers to get persistent footholds from which they can pivot and launch attacks or wreak havoc and create disruption of operations. Bespoke and out of date networking and security infrastructure likewise will be exploited as AI can readily adapt attackers for different operating systems and software levels. With AI, it will be much more attractive for cybercriminals to develop and execute attacks on these devices, leading to an increase in security incidents. AI itself is becoming one of the most attractive parts of the attack surface to exploit. Attacks on AI will increase dramatically, leading to significant data leaks and business process disruption. As AI gains ever wider adoption and is interwoven into all aspects of enterprise software, AI’s autonomous nature will be co-opted to enable the AI to function much like a human insider threat, where the internal AI models elevated access rights will be leveraged in large scale breaches. Robust security measures are needed to protect the rapidly expanding AI attack surface. 3. Cybercrime-as-a-service hits its stride The era when a cybercriminals reach was constrained by their technical skill is long gone. Today, an AI-driven underground economy is reshaping the threat landscape, empowering financially motivated actors with unprecedented capabilities. These adversaries no longer need deep expertise; they can tap into a growing ecosystem of ready-made services, ranging from exploit kits and ransomware-as-a-service platforms to stolen credential marketplaces and initial access brokers. Looking ahead to 2026, this cybercrime-as-a-service model is expected to reach new heights of sophistication. AI tools will enable even inexperienced attackers to execute complex, multi-stage campaigns with alarming precision. As a result, the traditional line between opportunistic hackers and highly organized cybercrime syndicates will continue to blur, driving both the scale and complexity of financially motivated attacks to levels weve never seen before. Its time to reimagine cybersecurity considering the changes well continue to see in 2026. The world’s pre-AI reactive model of security will not work in an AI-first attacker world. Simply adding AI to these legacy tools will give a false since of comfort in the face of the onslaught that is coming. This is an illusion of improved security that will be painfully exposed in 2026. Enterprises need to think differently in a post-AI world about cybersecurity, transforming from a reactive posture into a preemptive strategy that anticipates rather than reacts to attackers. Scott Harrell is CEO of Infoblox.
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E-Commerce
At this years Web Summit in Lisbon, Hayden Brown, president and CEO of Upwork, was asked which leadership skills are most in demand today. Her answer was immediate: The demand for soft skills is rising. As AI algorithms increasingly take over routine tasks, the qualities that cant be automatedcommunication clarity, the ability to work effectively with people, and conflict-resolution skillsare becoming essential for career growth. This trend extends far beyond the tech sector. According to LinkedIns Work Change Report, 70% of skills used across most professions will change by 2030; AI will be the main catalyst. Against this backdrop, Ive become convinced that soft skills have no expiration date. They are what determine whether a leader can keep their team productive even during periods of radical change or crisis. Ive identified five soft skills that draw a clear line between an average leader and an exceptional onesomeone truly capable of leading through transformation. 1. EMOTIONAL INTELLIGENCE Imagine that one of your team members productivity drops threefold: They used to complete at least 15 tasks weekly, but now barely finish five. When evaluating the situation only through metrics, the leader might say: I see you’re working slower. Can you fix this? The answer will be predictable: Yes, Ill try harder. And nothing will change. Ive noticed that how a leader makes an employee feel during a difficult moment directly affects their engagement, trust, and performance. If instead of assigning blame the leader asks, How are you feeling? it reveals the real reason behind the performance decline. Often it is personal circumstances, stress, or overload. A leader with strong emotional intelligence can notice even subtle signs of worsening psychological well-being within the team and use empathy to understand what is actually happening. By identifying the root causes, they can find solutions that truly improve performance. 2. CONFLICT MANAGEMENT According to the Workplace Peace Institute, American employees spend two hours weekly resolving disputes. Im convinced that many conflicts can be avoided if we learn to recognize them early. But when tension does escalate into an open confrontation, the leader must turn that conflict into a productive conversation. They should help both sides structure their thoughts, guide them toward a compromise, and clearly explain the reasoning behind their decisions. This is what effective conflict management looks likechanneling that energy into finding the best possible solution. To do this, a leader must separate people from the problem and avoid mixing emotions with arguments. 3. COMMUNICATION CLARITY Grammarly research shows that 64% of business leaders link higher team productivity directly to effective communication. In my view, clarity is the soft skill with the strongest impact on outcomes. When a leader fails to articulate goals, expectations, or the task contextsuch as constraints or why the business needs this decision right nowthe team operates blindly. They complete the task based on their own interpretation rather than the original intent; that gap costs time, quality, and effort. When people dont understand the outcome expected of them, they fill in the blanks with assumptions rarely aligning with reality. This affects the final result, but also team dynamics. Conflicts emerge, with a shared feeling that no one listens to us. Once I witnessed a situation where, due to urgency, a manager assigned a task to a developer who was less busy but had less experience. The more experienced colleague reacted indignantly: Why wasnt this ticket assigned to me? Is something wrong with my work? The problem was that the manager hadnt explained the criteria for choosing the assignee; the lack of clarity left room for incorrect assumptions. Its important to communicate not just what were doing, but also why were doing it that particular way. Whether its task assignment, delegation, or shifting priorities, its worth giving the team the full picture. 4. COACHING MINDSET According to an analysis of 34 million U.S. managerial job postings, since 2007 employers have been three times more likely to look for leaders with skills in collaboration, coaching, and influence. At the same time, job postings have decreased wording usage for traditional leadership. Today, valued leaders not only manage processes but also create conditions for their teams growth. And in this context, the coaching mindset takes center stage. A leader who possesses it can pose questions to people that stimulate them to seek their own solutions, rather than relying on directives. A coaching mindset fosters autonomy and strengthens peoples confidence in their abilities, ultimately enhancing the entire team. Leaders should not deprive their teams of the opportunity to arrive at solutions on their own. 5. RESILIENCE The modern world is full of uncertainty; leaders need to adapt to unforeseen changes, and also support others during challenging times. This is easier to do if they possess resilience and can stay calm under pressure, manage their own emotions, and recover quickly. I lead a team of 90 people, mostly Ukrainians. When Russia launched its full-scale invasion of Ukraine, my teamwhich suddenly found itself in dangerwas disoriented and scared. As a leader, I could not give in to panic, because I was responsible for my people. They came to me with many questions, and my actions, advice, and support helped the team get through those difficult times. The good news is that resilience is not an innate trait, but it can be developed. A leader becomes more resilient by learning to pause, consciously choose their response to a situation, and avoid reacting to immediate triggers. Teams that see a leaders resilience in challenging situations show six times higher engagement and innovation. This is no coincidence: People work more boldly and productively when they have an example of someone who doesn’t give in to anxiety and provides a sense of stability and security. Our team is proof of this. Illia Smoliienko is the chief software officer for Waites.
Category:
E-Commerce
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