The U.S. stock market delivered a stellar performance in 2024, surprising investors with soaring returns and setting new benchmarks. Bolstered by a growing economy and the Federal Reserve’s shift to cutting interest rates, the year saw major winners across sectors, from technology giants to alternative assets like bitcoin and gold.
Here’s a closer look at the numbers that defined an extraordinary year on Wall Street, as of December 20, 2024.
S&P 500’s Unprecedented Climb
The S&P 500 is on track to achieve a second consecutive year of remarkable growth, climbing 24.3% this year, following a 24.2% surge in 2023. This level of sustained growth hasn’t been seen since the late 1990s, when events like President Bill Clinton’s impeachment and Mark McGwire’s historic 70th home run captured headlines.
Setting records nearly every month, the S&P 500 achieved all-time highs in every month except April and August, with the latest peak recorded on December 6.
Federal Reserve Rate Cuts Fuel Optimism
The Federal Reserve has cut its benchmark interest rate three times this year, reducing it by 1 percentage point from a two-decade high. These cuts, though less than the anticipated 1.5 percentage points, have provided significant relief to the economy and fueled optimism for additional reductions in 2025.
However, December brought some disappointment for investors, as the Fed announced plans for just two further rate cuts in the coming year, fewer than previously expected.
Election Day Rally
Election Day saw a remarkable surge in the stock market, with the Dow Jones Industrial Average jumping 1,508 points the day after Donald Trump’s re-election. The S&P 500 followed suit with a 2.5% gain, marking its best day in nearly two years.
The rally was driven by investor speculation about Trump’s policies, with stocks of banks and smaller companies among the top performers. However, concerns over potential inflationary pressures from his administration have since tempered the initial excitement.
Bitcoin Breaks $100,000
Bitcoin shattered records in 2024, climbing above $108,000 in December after starting the year below $17,000. The cryptocurrency’s meteoric rise was fueled by falling interest rates and a renewed boost following Trump’s victory.
Trump’s pro-crypto stance and the appointment of a regulator perceived as friendly to digital currencies as the next SEC chair further bolstered bitcoin’s performance.
Gold Shines Amid Global Uncertainty
Gold matched the stock market’s strength with a 26.7% gain for the year, reaching record highs. Heightened geopolitical tensions and the Fed’s rate cuts drove demand for the safe-haven asset. With bonds yielding less, gold became increasingly attractive to investors.
Tesla and Nvidia’s Record Gains
Tesla shares soared past $420 in December, a symbolic milestone tied to CEO Elon Musk’s infamous 2018 comment about taking the company private at that price. Tesla’s stock rose from under $250 at the start of the year, partly due to expectations of favorable treatment under the Trump administration.
Meanwhile, Nvidia reported $91.2 billion in revenue for the nine months ending October 27, fueled by the ongoing artificial intelligence boom, which has cemented the company’s position as a tech leader.
A Year to Remember
From record-breaking stock indices to unprecedented gains in alternative assets, 2024 will be remembered as a year when the financial markets defied expectations and delivered extraordinary results for investors. As the year closes, all eyes are on 2025 and whether this momentum can continue.
