The US stock market wrapped up 2024 with a remarkable performance, exceeding 20% growth for the second consecutive year, last seen in 1997-1998. The S&P 500 rose due to low interest rates and corporate earnings growth.
The Federal Reserve cut interest rates four times in 2024, lowering borrowing costs and benefiting both businesses and consumers. However, concerns about inflation and the potential impact of President-elect Donald Trump’s proposed policies are clouding market optimism.
Some experts warn that US equity valuations are already rich, making it uncertain whether the market will continue to outperform. With the S&P 500 having become increasingly concentrated on a handful of large-cap tech stocks, investors may be taking on more risk than usual.
Trump’s proposed policies, including higher tariffs and mass deportations, could elevate inflation and affect market performance. As investors await clarity on these issues, the market’s trajectory remains uncertain.
Source: https://finance.yahoo.com/news/the-stock-market-has-never-looked-like-this-before–regardless-of-whos-president-140021170.html