Nasdaq 100 and S&P 500: AI Shares and Price Cuts Gas 2024’s 20% Market Surge…

A lot of the yr’s rally was pushed by enthusiasm round synthetic intelligence and its anticipated productiveness boosts. Market heavyweights similar to Nvidia and Apple noticed report highs, contributing to the broader market surge. The so-called “Magnificent Seven” shares continued to dominate, reinforcing bullish sentiment throughout the expertise sector.

The Federal Reserve’s choice to decrease its benchmark rate of interest by a full proportion level since September bolstered financial optimism, offering extra momentum within the latter half of the yr. Investor sentiment additional strengthened following November’s election of Donald Trump, with markets responding favorably to the potential for tax cuts and deregulation beneath the incoming administration. This optimism was notably evident within the banking sector, the place JPMorgan and Goldman Sachs surged by 42% and 49%, respectively. Tesla additionally posted sturdy returns, gaining 67% yr up to now.

Bitcoin mirrored the power of fairness markets, climbing 124% in 2024 and crossing the $100,000 threshold for the primary time.

Regardless of the sturdy annual efficiency, December introduced challenges as traders took earnings from top-performing shares, contributing to a four.eight% month-to-month decline within the Dow and a 1.7% drop within the S&P 500. The Nasdaq, nevertheless, bucked the pattern with a 1.7% acquire this month. The S&P 500 additionally didn’t ship a year-end “Santa Claus rally,” with the index slipping by not less than 1% over the past two buying and selling periods.

Market Forecast: The place May the Market Be Headed Subsequent?

Whereas the market ended the yr on a blended notice, the general bullish sentiment from AI-driven development and price minimize expectations stays intact heading into 2025. Nonetheless, uncertainty surrounding the incoming administration and the potential for profit-taking might result in volatility within the close to time period. Merchants will seemingly deal with financial information and Federal Reserve alerts as key drivers of momentum in early 2025.

Extra Data in our Financial Calendar.