The Real Story Behind the Energy Sector's Underperformance in 2025

The S&P 500 closed out 2025 with a total return of 16.4%, marking its third consecutive year of double-digit gains. Despite a choppy finish, it was a strong year for equities, with every sector ending the year in positive territory. Growth-oriented sectors led the way, supported by a consumer that proved far more resilient than many expected. (All returns discussed are total returns and include dividends). Technology once again topped the leaderboard, delivering a 24.6% return as investment in artificial intelligence, semiconductors, and cloud…