Stock market had a strong year in 2024, driven by AI adoption, rate cuts, and Trump's win.

From Nasdaq: 2024-12-31 11:00:00

U.S. stocks have had a stellar year in 2024, with the S&P 500 up 24%, the Dow Jones Industrial up 13%, and the Nasdaq Composite up 29.8%. Factors like AI adoption, rate cuts, and expectations under President-elect Trump have buoyed the market. The technology sector has been a standout performer, with the “Magnificent Seven” stocks driving the rally to a market-cap valuation of over $18 trillion.

The Federal Reserve cut interest rates in 2024, initiating a new rate cycle with two cuts in September and further reductions in November and December. Lower rates benefit borrowing costs for mortgages and business loans, stimulating economic growth and boosting the stock market. President-elect Trump’s win also boosted the market, with Bitcoin hitting a record high above $108,000 and Tesla seeing gains.

Cocoa emerged as the top performer in 2024, with a 180% price increase driven by adverse weather and supply constraints. Gold and silver also performed well due to rate cut optimism and geopolitical tension. On the flip side, Roundhill Cannabis ETF, Breakwave Dry Bulk Shipping ETF, and iShares Lithium Miners and Producers ETF were among the worst performers due to various factors affecting their respective sectors.

Top-performing ETFs in 2024 included Grayscale Bitcoin Trust, Roundhill Magnificent Seven ETF, and Global X MSCI Argentina ETF, with returns ranging from 60.8% to 120.9%. These ETFs provided exposure to Bitcoin, top tech stocks, and the Argentine market, respectively. On the other hand, Roundhill Cannabis ETF, Breakwave Dry Bulk Shipping ETF, and iShares Lithium Miners and Producers ETF were among the worst performers, facing challenges in their sectors.



Read more at Nasdaq: Top & Flop ETFs of 2024