Market outlook for 2025 positive, fueled by AI boom, tech earnings, interest rate cuts, and strong economy.
From Nasdaq: 2024-12-31 12:02:27
Wall Street ended 2024 on a high note, supported by the AI boom, interest rate cuts, and strong U.S. economy. Tech giants like Nvidia and Tesla led market gains, with Nvidia surpassing a $3 trillion market cap. Small-cap stocks hit record highs, fueled by optimism around Trump’s return and pro-business policies.
The Federal Reserve cut interest rates by 100 basis points in 2024, boosting equities. Nvidia achieved a $3 trillion valuation, while Tesla surpassed $1 trillion. Bitcoin hit $100,000, driving gains for crypto-related stocks. Market sentiment for 2025 will depend on clarity around Trump’s tax and trade policies.
Cryptocurrency-related stocks, like MicroStrategy and Coinbase, saw significant gains as Bitcoin breached $100,000. December saw turbulence as Treasury yields rose, impacting equity valuations. Analysts are cautious about stretched valuations and geopolitical uncertainties as they anticipate the first rate cut of 2025. AI and crypto will continue to shape market narratives in the coming year.
Read more at Nasdaq: 2025 Stocks Outlook: Trump Policies and Tech Earnings to Shape Markets