From Nasdaq: 2025-01-03 13:10:00

The S&P 500 had its best two-year return in over 25 years, with corporate earnings forecasted to grow. Rates rose despite 100 bps in FFR cuts. The Federal Reserve adjusted its policy projections. The dollar hit two-year highs. The stock market saw strong gains in 2024, with double-digit returns across major indices. Economic data showed growth and low unemployment. The Fed cut rates by 100 bps over three meetings. The Nasdaq, S&P 500, and Magnificent Seven Index all performed well.

Large-cap sectors like Communications and Technology outperformed in 2024. Small-cap sectors, including Technology and Staples, also saw gains. Various industries, from Banking to Cloud Computing, had strong returns. The UST yield curve saw a bear steepener after a 50 bps rate cut in September. Rates rose sharply following the FOMC meetings in 2024.

Chair Powell’s comments on policy changes and economic effects impacted market trends. The Fed’s hawkish shift in December affected equity performance. Corporate earnings grew in Q3 and are expected to continue rising. Uncertainties in 2025 include policy changes, rising rates, and a strong dollar. The impact on economic activity could be significant.

This information is for educational purposes only. Consult a securities professional for investment advice. All information is believed to be accurate but is provided without warranty.



Read more at Nasdaq:: 2024 Review and 2025 Outlook