S&P 500 saw a 25% return in 2024 fueled by low inflation and strong earnings

From Nasdaq: 2025-01-02 12:16:00

In 2024, the S&P 500 saw a total return of 25%, entering its third year of a bullish run fueled by low inflation and strong corporate earnings. Information technology, communication services, and consumer discretionary sectors led the gains, with defensive sectors lagging.

Cyclical sectors like industrials and financials also saw a resurgence in 2024, contributing to market breadth improvement. Despite late institutional selling in December causing volatility, the S&P 500 logged its best back-to-back annual gain in nearly 30 years.

The top-performing stock in the S&P 500 for 2024 was Palantir Technologies (PLTR), with a 340% return. The company, focused on artificial intelligence systems, benefitted from government contracts and recent upgrades. Palantir’s revenue comes mainly from government agencies, with recent partnerships boosting its cloud services.

Vistra Energy (VST) took the second spot in S&P 500 returns, gaining over 260% in 2024. The company, a provider of power and electricity, saw increased demand from data centers. Vistra’s positive Q3 earnings and share repurchasing program boosted its performance.

Nvidia (NVDA) rounded out the top 3 in S&P 500 returns, delivering a 171% gain. The chip giant benefited from the tech resurgence and AI adoption. Nvidia’s focus on AI applications in various industries positions it for further growth, with analysts optimistic about its future earnings potential.



Read more at Nasdaq: Here Are Last Year’s Top-Performing Stocks From the S&P 500