The Dow Jones Industrial Average managed a gain for the day of 108.00 points (1.25 per cent), reaching 8776.39 at the closing bell.
But it ended the year with an overall loss of 33.84 per cent, the worst annual loss since 1931.
The broad-market Standard & Poor's 500 index also suffered its worst performance in 77 years, losing 38.48 per cent, despite an overnight rise of 12.63 points (1.42 per cent) to 903.27, based on preliminary closing data.
The Nasdaq, created in 1971, lost 40.54 per cent on the year, its worst annual result in history, after an overnight rise of 26.33 points (1.70 per cent) to 1577.03.
European stock markets also closed firmer on the last trading day of the year, with London's FTSE 100 index of leading shares up 0.94 per cent at 4434.17 points.
In Paris, the CAC 40 index inched up 0.03 per cent to 3271.97 points, while the Frankfurt market was closed for the year-end holidays.
Generally though, it was a year that couldn't end soon enough. Global stocks suffered a catastrophic 2008, during which many key markets were decimated.
Here is a list of 20 of the biggest losers among world stock market indices in percentage points over the past 12 months:
Reykjavik (OMX index) -94.4 per cent
Moscow (RTS) -72.5 per cent
Dubai (DFM) -72.4 per cent
Bucharest (BET) -70.5 per cent
Dublin (IOI) -66.2 per cent
Hanoi (HCMSI) -65.9 per cent
Shanghai (SE Composite) -65.4 per cent
Athens (Athex) -65.3 per cent
Vienna (ATX) -61.2 per cent
Lima (IGBVL) -59.9 per cent
Pakistan (KSE-100) -58.3 per cent
Riyadh (Tadawul) -56.5 per cent
Cairo (Case 30) -56.4 per cent
Brussels (Bel-20) -53.8 per cent
Helsinki (OMX Helsinki) -53.4 per cent
Budapest (BSEI) -53.3 per cent
Oslo (OBX) -52.8 per cent
Mumbai (Sensex 30) -52.5 per cent
Amsterdam (AEX) -52.3 per cent
Istanbul (ISE 100) -51.6 per cent
Japanese market ends year 42pc lower
With no such thing as a safe bet, investors turn to the untraditional
