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An Eventful Conclusion to 2024’s Trading Year
As the curtain began to draw on 2024, investors witnessed US stocks making a solid comeback on Tuesday. This robust performance brings a fitting conclusion to what has been an extraordinary year in the stock markets, despite a somewhat tepid finish to recent sessions.
A Year of Significant Gains
To understand the magnitude of this turnaround, one need only glance at the data from Yahoo Finance. The benchmark S&P 500 has seen an impressive rise of about 23.8% over the year. Moreover, the tech-centric Nasdaq Composite has soared nearly 30%. The venerable Dow Jones Industrial Average, ever the steadiest of the trio, has posted a respectable 13% increase.
The Role of the ‘Magnificent Seven’
This year’s stellar performance in the stock markets was significantly driven by what has been termed the "Magnificent Seven." These influential stocks have played a critical role in sustaining a bullish rally across the board. The domination of these stocks points to an ongoing enthusiasm for artificial intelligence trades as crucial market drivers (source).
Economic Movers and Shakers
Naturally, broader economic forces have also been in play. The Federal Reserve, for example, marked a change in policy with its first interest rate cut in four years. Furthermore, the anticipation surrounding Donald Trump’s return to the White House acted as a catalyst, buoying stock performance notably towards the year’s end. In fact, Yahoo Finance’s Josh Schafer and Alexandra Canal have encapsulated the year’s economic themes adeptly through charts.
Commodities and Cryptocurrencies
Turning our attention to commodities, gold has performed admirably this year, gaining over 27%, the highest annual increase since 2010. Meanwhile, the rollercoaster ride of Bitcoin deserves mention. It has rallied over 100%, although it is worth noting that it has slipped back from an earlier €100,000 mark (source).
The Unexpected Pause
Alas, not all was smooth sailing as the year drew to a close. Volatility crept into the markets over the last week, momentarily halting the otherwise buoyant atmosphere. This downturn stood in stark contrast to the usual "Santa Claus" rally that gloriously rounds off the year.
In summary, 2024 has been a pivotal year in trading, marked by remarkable gains and significant trends. As the year concludes, speculation and analysis will undoubtedly increase, shedding light on what the future holds for global financial markets.
