Wake Up With Breakfast News!

Wake up to the latest market news, company insights, and a bit of Foolish fun -- all wrapped up in one quick, easy-to-read email, called Breakfast News. Delivered at 7:30 a.m. ET every single market day. See an example of our weekday Breakfast News email & sign-up below.

Loading paragraph...

Market Data Table

Breakfast News: The S&P 500's Golden Year

January 2, 2026

Wednesday's Markets
S&P 500 6,846 (-0.74%)
Nasdaq 23,242 (-0.76%)
Dow 48,063 (-0.63%)
Bitcoin $87,605 (-0.52%)

Chart showing the S&P 500's performance from January 2, 2025, through December 31, 2025, ending with the S&P up 16.6%.

1) S&P 500 Chalks Up Third Annual Win

The S&P 500 rose a little over 16% in 2025, posting a third straight year of double-digit percentage gains, with communication services, info tech, and industrials leading the charge. Every sector finished in the green for the first time since 2021, with the index up 63.93% since the start of 2023.

Three of the index's top 10 performers were data storage stocks: The artificial intelligence (AI) infrastructure boom helped to power a 559% move higher for Sandisk (NASDAQ:SNDK), along with gains of over 200% for Western Digital (NASDAQ:WDC) and Seagate Technology (NASDAQ:STX).
Gold and silver recorded their best annual performance since 1979: Thanks to the impact of U.S. interest rate cuts, tariff worries, and other factors, precious metals rallied hard last year. Bitcoin (CRYPTO:BTC) fell 7%, its first annual loss since 2022.

Loading paragraph...

2) AAPL Retreats as Vision Pro Sales Fall

Apple (NASDAQ:AAPL) is reportedly cutting back on manufacturing and promotion of the Vision Pro headset, with the International Data Corporation expecting just 45,000 units to have been shipped last quarter, as the company struggles to attract consumers to the product.

Digital ad spend was down 95% in key markets: Market intelligence group Sensor Tower noted 2025 ad spending for the headset in markets such as the U.S. and the U.K. was significantly lower than 2024, when the Vision Pro was first launched.
Flat versus the S&P 500 since September 2023 Hidden Gems recommendation: The move represents another headwind for the company, validating the comments made last summer by Fool contributing analyst Lou Whiteman, who said, "Apple is yet to answer the question about the 'next big thing,' be it AI or a new device, but the company's core franchises remain massively profitable."

Loading paragraph...

3) Baidu to Spin Off AI Unit

Baidu (NASDAQ:BIDU) stock rose as much as 12% in pre-market trading following news of a registration for an initial public offering (IPO) to spin off its AI and robotics business, Kunlunxin, in a move that will help Baidu monetize operations to offset slowing demand in the ad division.

China pushes to reduce reliance on U.S. chipmakers: The Kunlunxin IPO news comes as Asian AI chip designer Shanghai Biren Technology saw its shares surge 76% on debut today in Hong Kong, showing the acceleration of interest in Nvidia (NASDAQ:NVDA) alternatives.
First U.S. chip export licenses for 2026 granted: Taiwan Semi (NYSE:TSM) confirmed the U.S. government granted an annual license to import U.S. chip manufacturing equipment to facilities in China, as companies now have to get approval for doing so, which wasn't the case in 2025.

Loading paragraph...

4) Thank You, Warren Buffett!

During his time leading the company, Buffett transformed a struggling textile mill into a trillion-dollar conglomerate. Berkshire Hathaway now owns a diverse range of businesses, from insurance companies to railroads, and holds more than $300 billion in cash on its balance sheet.

"For 60 years the sign on Warren Buffett's office at Berkshire Hathaway (NYSE:BRK-B) read CEO. No longer. Starting [yesterday], Greg Abel takes over as CEO of the $1 trillion conglomerate. There are no bigger shoes to fill. Buffett is a first-time, slam dunk, unanimous HOF CEO. One of the all-time greats. Not perfect. Never tried to be. Humble. Principled. Dedicated. Brilliant. And for 90 years hungry to make a lot of money. Which he did for so many. We will miss you, Mr. Buffett. And we look forward to your annual Thanksgiving message for hopefully many years to come. Thank you." -- Fool analyst Andy Cross

Loading paragraph...

5) Your Take

Berkshire Hathaway trailed the S&P 500 in 2025. Do you think it will be a market-beater over the next five years, though? Debate with friends and family, or become a member to hear what your fellow Fools are saying.

Loading paragraph...