The US stock market closed out its record-breaking year on a mixed note, with the S&P 500 down 0.4% and the Dow Jones Industrial Average slipping 0.1%. The Nasdaq composite lost 0.9%, but big tech stocks still drove the rally, pushing the Nasdaq to a yearly gain of 28.6%.
The market’s stellar run was driven by a growing economy, solid consumer spending, and a strong jobs market. Artificial-intelligence businesses and solid corporate earnings growth also contributed to the surge.
However, the Fed’s cautious approach heading into 2025 has raised concerns that inflation could reignite. The central bank has signaled more interest rate cuts, but President-elect Donald Trump’s threats to hike tariffs on imported goods have sparked anxiety.
Bitcoin and gold also saw significant gains this year, with prices above $100,000 for the first time and a 27.4% gain for gold, respectively.
Despite some declines, the market’s performance was still impressive, with the S&P 500 up 23.3% for the year. The Dow rose 12.9%, while the Nasdaq has seen significant growth from big tech stocks.
Analysts say that missing out on a “Santa Claus” rally may not be a negative omen, as historically, a negative Santa Claus rally still resulted in an average gain of almost 6% in the subsequent year.
Source: https://apnews.com/article/stock-market-inflation-china-a03146ec7209b229a3f11e17978c231d