2024 was marked by remarkable gains across various markets, including stocks, bonds, and the US dollar. The S&P 500 posted a second consecutive year of gains exceeding 20%, with some areas seeing even more significant movements.
Bitcoin, often seen as a wild card, had an exceptional year, rising by over 124% to nearly $109,000 in November. This surge is largely attributed to investor anticipation of a friendly crypto industry under Donald Trump’s incoming administration. Some predict the token could double in value by 2025.
Meanwhile, bond yields experienced significant fluctuations throughout the year. The 10-year US Treasury yield began at 4% and surged to 4.74%, only to decline again before surging once more as interest rates were cut. Despite this volatility, bond markets ultimately repriced based on recalibrated expectations.
The stock market, however, remained remarkably stable, with minimal downside throughout the year. The S&P 500 gained around 23% and drove some bears into hibernation. Investors are optimistic about another year of solid gains but acknowledge potential added volatility due to the incoming Trump administration.
Other notable performers included Nvidia, whose shares more than tripled in 2023 and soared an additional 174% in 2024, making it the world’s largest company. The US dollar also surged, rising by over 8% since the election and breaking out to multi-year highs.
Source: https://markets.businessinsider.com/news/stocks/stock-market-wild-year-5-charts-prove-it-interest-rates-2024-12