NEW YORK — 2024 is turning out to be a remarkable year for investors, marked by significant growth in U.S. stocks. The S&P 500 has reached record levels as the economy continues its expansion and the Federal Reserve has initiated interest rate cuts.
The year has seen notable gains for tech giants, with companies like Apple and Nvidia driving impressive stock price increases. Additionally, alternative investments such as Bitcoin and gold have also experienced considerable upticks.
As of December 20, the S&P 500 is up 24.3% this year, following a 24.2% increase in the previous year, indicating the potential for the index to close out two consecutive years with gains exceeding 20%. This significant rise is reminiscent of milestones from the late 90s.
The S&P 500 has reached a series of all-time highs, with the first occurring on January 19, showcasing a recovery from the market downturn attributed to high inflation and concerns over interest rates. Notably, the index has set records every month this year, except for April and August.
The Federal Reserve has implemented interest rate cuts from a two-decade high, which has provided much-needed relief to the economy. The anticipation of these cuts played a crucial role in the stock market’s success in 2024. However, the Fed’s recent statements indicated fewer expected cuts in 2025 than investors had initially hoped for.
Following Election Day, the Dow Jones Industrial Average increased significantly as investors speculated on the potential economic impact of political changes. Despite initial optimism, concerns over potential inflation spikes have tempered enthusiasm.
Bitcoin has reached new heights, surpassing $108,000 this month, fueled by decreased interest rates and increased interest from various market players. This marks a significant recovery from its value of under $17,000 two years ago.
Gold has also risen sharply this year, driven by global conflicts and the Federal Reserve’s rate cuts, which have made gold a more attractive investment compared to bonds offering lower yields.
Tesla’s stock has surged past the $420 mark, fueled by investor confidence in the company’s future, particularly in light of political developments that may favor tech industries.
Nvidia reported a staggering revenue increase, reaching $39 billion through October, propelled by the ongoing demand for artificial intelligence technology. This surge has significantly boosted the company’s market capitalization.
GameStop’s stock price saw a notable jump after a prominent investor made a public return, echoing trends seen during the previous meme stock phenomena.
The U.S. economy has shown resilience, growing at impressive rates during the first three quarters, easing fears of a recession despite ongoing inflationary pressures.
In the commercial real estate sector, the vacancy rate for U.S. office buildings has reached an all-time high, reflecting shifting demands driven by remote work trends that emerged during the pandemic.
Nationally, home sales have remained sluggish, with figures indicating that a significant surge in December would be needed to match last year’s sales levels. The supply of homes for sale remains limited, further complicating the housing market.
