US Stocks Wrap Up a Stellar Year

Despite a slight downturn on the final trading day of 2024, the US stock market celebrated a remarkable year, with the S&P 500 achieving a 23.8% gain. This marks the index's second consecutive year of growth exceeding 20%, fueled by advancements in artificial intelligence, a robust economy, and strategic Federal Reserve interest rate cuts.

Technology and Economic Optimism Drive Growth

Nvidia, a leader in the AI sector, saw an impressive 172% increase, highlighting the tech industry's significant impact on the market's performance. The Nasdaq outperformed with a 25% gain, reflecting the sector's strength. Economic confidence received a boost from the Federal Reserve's decision to reduce rates by 1% since September, further invigorating the market.

Year-End Adjustments and Market Movements

However, December witnessed a wave of profit-taking, leading to a 5.3% drop in the Dow, its most challenging month since September 2022. At the close, the Dow Jones slightly decreased by 0.07%, with Nvidia experiencing a 1.87% drop. The Nasdaq 100 fell by 0.87%, and the S&P 500 saw a 0.43% decrease, with NRG Energy falling by 2.11%.

In the currency market, the euro appreciated by 0.40% against the dollar, trading at $0.96545 at 3:58 pm ET, indicating a day of mixed outcomes across the financial spectrum.