US stocks: Closing the books on a solid 2024
2025-01-02
Category: None

** Wall Street has closed the books on 2024, with the AI boom, rate cuts powering a bull run
** S&P 500 index SPX finishes the month with a 2.5% loss, the quarter with a 2.1% gain, and the year with a 23.3% jump
** SPX up 53% over 2023-2024 period, scores biggest rolling two-year gain since 66% run in 1997-1998
** Once again, thanks to the Magnificent Seven, gains were skewed by strength in massive growth and technology names; Indeed, when it came to cutting-edge ETF themes, Mag 7 still ruled the roost
** S&P 500 growth ETF SPYG, with a Q4 dash, ran for the roses, and scored its biggest yearly gain since 2009, topping the ETF investing style factors tote board for 2024
** Dow Industrials DJI rose about 13% in 2024, while the Nasdaq IXIC advanced about 29%. The small-cap Russell 2000 RUT gained ~10%
** For 2024 SPX sectors, Communication Services S5TELS and Tech S5INFT led the way higher with surges of 39% and 36%. Materials S5MATR, down 1.8%, was the sole loser
** Tech S5INFT up 36%. Chip stocks SOX score a solid 19% rise for the year as AI-darling Nvidia NVDA extended its gains, while Intel INTC tumbled
** Consumer Discretionary S5COND up 29%. Cruise stocks advance as demand strengthens, and GM GM shines in rough year for US automakers, though U.S. restaurant chains grapple with weak demand, value wars in 2024
** Financials SPF rally 28% as top US banks advance on rate cuts, revival in deal-making. Under the surface, big banks outperformed with the S&P 500 Banks Index (.SPXBK) up 34%, while the KBW Regional Banking index (.KRX) lagged with a near-10% rise
Also, insurers catch up with market benchmark after lagging in 2023
** Utilities S5UTIL power up roughly 20%. Sector's rise helped by surging demand for growing AI needs, data center expansions
** Industrials S5INDU add 16%. US defense stocks rise on higher global military spending, and U.S. airline stocks soar on strong travel demand
** Energy SPN gains >2%. NYMEX Crude futures CL1! drill down to support, is it solid? CLc1, at just shy of $72, edges lower on the year
** Healthcare S5HLTH adds 0.9%. Lilly LLY rides weight-loss drug wave, posts eighth straight yearly gain, and hospital operators rise. Though health insurers end another year with losses
** In terms of individual SPX stocks, Palantir PLTR, Vistra Corp VST and Nvidia NVDA, boosted by AI fever, were the top performers, surging 340%, 258% and 171%. On the flip side, Walgreens Boots Alliance WBA was the worst performer, falling 64%
** U.S. 10-Year Treasury yield US10Y jumps in Q4, pushes back over 4.50%. Will rising yields derail equities?
** U.S. Dollar index DXY gains 6.6% for the year
** Gold GOLD advances ~27% in 2024, hits record high of $2,790.15 in late Oct. Though dips in Q4, to end four qtr win streak
** 'To the moon:' bitcoin BTCUSD more than doubles in 2024, though crypto stocks mixed
** Meanwhile, back in the game: IPO stocks surge in 2024 as 'animal spirits' lift equity markets. This as stellar debut in Dec for software startup ServiceTitan TTTAN seen as an encouraging sign for 2025
** SPX performance for 2024: