U.S Stocks Post Strong Gains in 2024 Despite Rough December

The S&P 500 reached its second consecutive annual gain of more than 20 percent, as investors wrapped up another successful year


The S&P 500 reached its second consecutive annual gain of more than 20 percent, as investors wrapped up another successful year. The bullish run was driven by optimism about rate cuts, economic strength, and artificial intelligence.

 

The S&P 500 rallied by 23.31% in 2024, after posting a gain of 24.2% in 2023. The Nasdaq posted a gain of 28.64 percent in 2024, the Dow has added 12.88 percent. The Federal Reserve has increased confidence in the U.S. economy by lowering its benchmark interest rate by a full percentage point since September 2024.

Stocks also experienced a significant rally as investors welcomed the idea of reduced taxes and more lax regulations under a Republican government.  JPMorgan and Goldman Sachs ended the year up y 41% and 48%, respectively.  Tesla ended the year over 62 percent.

Wall Street had a rough end to December despite the impressive year-to-date performance, as investors took profits from some of 2024’s biggest winners and concerns about rising rates continued to grow. The Dow dropped 5.3 percent at the end of the month. While the Nasdaq managed to gain 0.5 percent, the S&P fell 2.5 percent.

A Santa Claus rally, in which the market rises on each of the first two trading days of January and the five last trading days of a calendar year, was what investors were hoping for. The S&P 500 saw four consecutive days of declines at the end of the year for the first time since 1966.

ABOUT THE AUTHOR See More
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.

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