NEW YORK, Dec 31 – The U.S. stock market ended 2024 on a subdued note, closing slightly lower on Tuesday in a quiet session that contrasted sharply with the dynamic and record-setting gains seen throughout the year. Despite the day’s losses, Wall Street celebrated a banner year fueled by the artificial intelligence (AI) boom and the Federal Reserve’s easing of interest rates for the first time in over three years.
The Nasdaq, S&P 500, and Dow Jones Industrial Average all dipped during the final trading session, reflecting a low-volume market as investors wrapped up what has been a historic year for equities.
A Year of Record Highs
Propelled by AI advancements and favorable monetary policies, the Nasdaq surged 28.6% over the year, while the S&P 500 gained an impressive 23.3%, marking its strongest two-year growth streak since 1997-1998. The Dow followed with a solid 12.9% rise in 2024.
Sector-wise, technology, communication services, and consumer discretionary emerged as the year’s top performers, boasting gains between 29.1% and 38.9%. Meanwhile, healthcare, real estate, and energy posted modest single-digit advances, and the materials sector was the sole laggard, dropping nearly 1.8% for the year.
Q4 Performance Highlights
During the fourth quarter, the Nasdaq climbed 6.2%, the S&P 500 rose by 2.1%, and the Dow eked out a modest 0.5% gain. This solid quarterly performance capped off a year of robust market activity, with tech-driven growth leading the charge.
Looking Ahead to 2025
Despite the tempered close, analysts remain optimistic about the market’s trajectory. “This year has been a testament to the transformative power of AI and strategic monetary policy,” said a prominent market strategist. “As we head into 2025, the foundation is set for continued resilience and potential growth.”
The Federal Reserve’s approach to interest rates, coupled with advancements in technology, are expected to play pivotal roles in shaping the market’s performance in the coming year. Investors are now turning their attention to new opportunities and challenges on the horizon as Wall Street gears up for another dynamic year.
