Wall Street Closes 2024 on Record Highs: A Year in Review/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stock indexes edged higher on Tuesday morning as Wall Street wrapped up a record-breaking year of gains, buoyed by a strong economy, easing inflation, and surging sectors like artificial intelligence.
Key Highlights: Wall Street Today
- Indexes:
- S&P 500 rose 0.2%.
- Dow Jones Industrial Average gained 120 points, or 0.3%.
- Nasdaq composite added 0.1%.
- Sector Performance: Health care and financial stocks led gains, with AbbVie up 0.7% and JPMorgan Chase rising 0.5%.
- Bond Yields:
- 10-year Treasury yield fell to 4.52%.
- 2-year Treasury yield dropped to 4.22%.
- Global Markets: European indexes mostly rose, while Asian markets were mixed due to New Year holidays in Tokyo and Seoul.
Wall Street Closes 2024 on Record Highs: A Year in Review
A Historic Year for U.S. Markets
The S&P 500, up more than 24% for the year, set 57 record highs in 2024, marking its first back-to-back annual gains of over 20% since 1998. The Nasdaq surged 30%, and the Dow climbed 13%, underscoring the strength of the broader market.
Factors Driving the Rally
- Economic Resilience:
- The U.S. economy defied recession fears, supported by robust consumer spending and a strong labor market.
- AI Boom:
- Earnings Growth:
- Companies in the S&P 500 are expected to report earnings growth of more than 9% for the year, according to FactSet.
- Easing Inflation:
- Inflation moved closer to the Federal Reserve’s 2% target, helping to raise hopes for continued economic growth.
- Interest Rate Cuts:
- The Federal Reserve’s three rate cuts in 2024 helped ease borrowing costs, though the central bank has signaled caution for 2025.
Concerns Heading Into 2025
- Sticky Inflation:
- Policy Risks:
- President-elect Donald Trump’s threats to impose tariffs on imports have raised fears of higher inflation due to increased costs being passed on to consumers.
Beyond Stocks: Bitcoin and Gold Shine
- Bitcoin: Surged past $100,000 for the first time, continuing its meteoric rise from just $17,000 two years ago.
- Gold: Gained more than 26% for the year, shattering previous records as investors sought safe havens amid uncertainty.
What’s Next?
- Holiday Schedule: U.S. markets will be closed Wednesday for New Year’s Day.
- Upcoming Reports:
- Thursday: U.S. construction spending data for November.
- Friday: December manufacturing update.
As 2024 concludes, investors are eyeing opportunities and challenges in 2025, with market conditions, global events, and policy shifts poised to shape the year ahead.
