In 2024, investors experienced a successful year as U.S. stocks surged higher, leading the S&P 500 to record-breaking levels. The year was marked by growth in various sectors, including Big Tech, as well as alternative investments such as Bitcoin and gold. The S&P 500 saw a significant increase of 24.3%, following a similar surge the previous year. The index set a total of 57 all-time highs throughout the year, with the latest one occurring on Dec. 6.
The Federal Reserve played a key role in the market’s success by cutting interest rates three times during the year. These rate cuts, along with expectations for further cuts in 2025, contributed to the overall bullish sentiment in the market. However, the Fed’s announcement of fewer expected rate cuts in 2025 than previously anticipated disappointed some investors. The Dow Jones Industrial Average saw a 1,508-point increase the day after Election Day, driven by investor optimism surrounding Donald Trump’s return to the White House.
Bitcoin reached a record high above $108,000 in December, fueled by declining interest rates and increased interest following Trump’s election. Gold also saw a significant increase of 26.7% for the year, benefiting from global conflicts and the Fed’s rate cuts. Tesla’s stock price surpassed $420 in December, setting a new record and reflecting the company’s strong performance throughout the year. Nvidia, a leader in artificial intelligence technology, reported $91.2 billion in revenue for the nine months through Oct. 27.
The meme stock craze resurfaced in 2024, with GameStop experiencing a 74% gain after Keith Gill, known as “Roaring Kitty,” reemerged online to support the stock. Gill’s post also led to increases in other meme stocks like AMC Entertainment. The U.S. economy showed resilience throughout the year, with growth rates of 1.6%, 3.0%, and 3.1% in the first three quarters. However, concerns remain about inflation and its impact on households, particularly those with lower incomes.
The vacancy rate for U.S. office buildings rose to an all-time high of 20.1% in 2024, reflecting the shift towards remote work during the pandemic. Despite this, office building owners managed to maintain stability in the market. The housing market faced challenges, with a total of 3.73 million homes sold in the first 11 months of the year. Sales would need to surge significantly in December to match the low levels of 2023, as high mortgage rates and a shortage of homes for sale continued to deter potential buyers.
