Don't fret about the US stock market's opening on the first trading day of 2025. It holds no significance for the entire year's performance.

U.S. stocks ended the first trading day of 2025 with a decline after a volatile session on Thursday, but investors should not be worried, as history shows that the performance of the S&P 500 index on the first trading day of the year cannot be a barometer of the index's final annual return, according to data.The S&P 500 index rose 23.3% in 2024, the first time the benchmark index has risen more than 20% in two consecutive years since 1997-1998. Market participants still expect U.S. stocks to rise again in 2025, but expect the gains to be weaker. Analysts pointed out that the negative factors such as the Fed's hint of a slower pace of rate cuts and uncertainty about the full impact of Trump's policies would weaken the gains."We expect the stock market bull (whether in terms of price or duration) that has lagged a typical up cycle to be sustained by continued economic expansion, which raises corporate profits, eases monetary policy, and continues to provide fiscal support," said Keith Lerner, co-chief investment officer at Truist. "These positives are partially offset by rising market valuations and investor optimism, which suggests the bar for positive surprises has been raised. These factors, along with broader policy outcomes, suggest a more bumpy ride than last year. Investors should seek to take advantage of opportunities that may present themselves in a continuing upward trend.""Will this week's stock market action provide clues for the rest of the year? Probably not," said David Morrison, senior market analyst at Trade Nation. "It is reasonable to assume that much of the recent volatility and downward pressure on stocks is the result of year-end balance sheet dressing by institutions and fund rebalancing, as managers shift their assets between stocks and bonds."