US markets wrapped up a blockbuster year in 2024, with the S&P 500 gaining over 23% despite a disappointing December that saw the Dow drop over 2,000 points. This rare achievement is only rivalled by a handful of times since 1927.
The index’s back-to-back gains of over 20% are its best performance since 1997 and 1998. Investors’ retirement savings might be looking more cushioned than usual due to the stellar year for stocks, as many portfolios are invested in indices like the S&P 500.
Cooling inflation, strong consumer spending, and a solid but slowing job market contributed to Wall Street’s impressive returns this year. The tech-heavy Nasdaq index gained 28.6%, while the blue-chip Dow index rose 12.9%. US markets outperformed stocks in Europe and Asia across the year.
Analysts expect continued growth into 2025, with a consensus forecast of a 14.8% gain for the S&P 500 next year. However, some analysts warn that stock market breadth has been poor, with most companies in the S&P 500 falling since November.
Cryptocurrencies like bitcoin and gold also had notable years, rising by over 120% and 27%, respectively. Commodities like cocoa surged over 168% as climate issues disrupted global supplies.
Source: https://edition.cnn.com/2024/12/31/investing/stock-market-end-of-year-wrap/index.html