A Roaring Year of Trading Comes to a Close
As the curtain falls on 2024, US stocks have staged a remarkable comeback, capping off a year of impressive gains. The S&P 500 has surged 23.8%, while the tech-heavy Nasdaq Composite has soared almost 30%. The Dow Jones Industrial Average, though more modest, has still posted a respectable 13% gain.
The Artificial Intelligence Trade Leads the Charge
One of the key drivers of this year’s rally has been the artificial intelligence trade, led by the “Magnificent Seven” stocks. This trend has been further fueled by the Federal Reserve’s first interest rate cut in four years and President-elect Donald Trump’s impending return to the White House.
Commodities and Cryptocurrencies Join the Party
Gold has seen its biggest yearly gain since 2010, rising over 27%. Meanwhile, bitcoin has rallied an astonishing 100% this year, although it has pulled back from its recent high of $100,000.
A Bumpy End to the Year
Despite the overall optimism, the last week has seen markets give up some of their gains, bucking the traditional “Santa Claus” rally that typically marks the end of the year.
Looking Ahead to 2025: Potential Clash Between Trump and the Fed
As we enter the new year, all eyes will be on the potential clash between President-elect Donald Trump and Federal Reserve Chair Jay Powell. Their differing views on economic policy could lead to tensions, particularly if Trump’s policies spark inflation, forcing the Fed to reassess its interest rate cuts.
Economic Data and Earnings
Today’s economic data includes the S&P CoreLogic 20-City report for October and the Dallas Fed Services Activity report for December. On the earnings front, there are no notable releases scheduled.
Catch Up on the Latest News
Some of the top stories you may have missed include:
- How the Fed and Trump could collide in 2025
- Tesla’s stock surge and potential annual sales drop
- A Chinese-backed hacker’s breach of the US Treasury
- Ackman’s expectations for Trump to privatize Fannie Mae and Freddie Mac
- A Meta insider’s sale of $1.39M worth of shares
- Paramount’s power struggle among moguls and CEOs
- Chinese stocks’ first annual gain since 2020
- The rise of travel demand and deals in 2025
Leave a Reply