A Year of Unparalleled Growth: US Stocks Soar in 2024
As the curtain closes on 2024, the US stock market is celebrating an extraordinary year of growth. Despite a sluggish finish, the S&P 500 has surged an impressive 23.8%, with the tech-heavy Nasdaq Composite leading the charge with a nearly 30% gain. The Dow Jones Industrial Average, meanwhile, has posted a respectable 13% increase.
The “Magnificent Seven” Shine Bright
A select group of stocks, dubbed the “Magnificent Seven,” has stolen the spotlight with astronomical gains. Nvidia, the leader of the pack, has rallied a staggering 170% as artificial intelligence (AI) mania sweeps the market. Tesla, Meta, Amazon, Alphabet, Apple, and Microsoft have also posted remarkable gains, ranging from 67% to 12%.
Gold and Cryptocurrencies Join the Party
Commodities have also had a banner year, with gold prices soaring over 27% – its biggest yearly gain since 2010. Bitcoin, meanwhile, has rallied an astonishing 100% despite a recent pullback from its $100,000 peak.
Federal Reserve and Presidential Impact
The Federal Reserve’s first interest rate cut in four years and President-elect Donald Trump’s impending return to the White House have contributed to the market’s upward trajectory. However, the relationship between Trump and Federal Reserve Chair Jay Powell is expected to be closely watched in 2025, with potential clashes over economic policies and interest rates.
A Bullish Outlook for 2025
Despite some uncertainty, analysts predict a robust year ahead for investors. S&P 500 earnings are expected to grow 15% year over year in 2025, fueling a bullish outlook. While interest rates may remain elevated, corporate earnings are expected to continue their upward trend.
What’s Ahead for the Fed and the White House?
The new administration’s economic policies could impact the Fed’s decision-making, potentially leading to interest rate cuts or changes to the central bank’s workforce. The tension between the Fed and the incoming White House will be closely monitored in the coming year.
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