Stock exchanges on the other side of the Atlantic ended the December 31st session in the red, but the year as a whole was positive for the main indices.
The Dow Jones industrial index closed down 0.07%, at 42,544.22 points. In turn, the Standard & Poor’s 500 fell 0.43%, to 5,881.63 points. The technological Nasdaq Composite registered a drop of 0.9%, to 19,310.79 points. It mainly put pressure on the increase in interest rates on American debt over 10 years and the fact that there was more prudence at the end of the year, with a shorter trading week and less volume.
In a year in which Wall Street started off on the wrong foot, trading in decline in the first session, the North American stock markets experienced ups and downs but, overall, the balance was very positive, with the three main indices setting new highs. historical.
O Dow Jones grew 12.8% in 2024, having set a record on December 4th at 45,073.63 pointss, while the Nasdaq Composite appreciated 30.8% – and set an all-time high on December 16, at 20,204.58 points.
Me about the S&P 500by jumping 24.01%, marked the best two-year streak since 1997-98after also having advanced 24% in 2023. In fact, according to FactSet, since that period – almost 30 years – the global reference index has not had consecutive gains above 20%. Over the two years as a whole, the S&P 500 added almost 50%, after losing 20% in 2022. And this year it set a new historical record, at 6,099.97 points.
The year 2024 was quite mixed for North American stocks: geopolitical tensions which have intensified, especially in the Middle East, US presidential electionsThe and the return of the Federal Reserve to the policy interest rate cutting cycle – but whose trajectory may now undergo some changes, with a slowdown in the pace and size of the decline in the federal funds rate expected, due to the potential resurgence of inflation with the expected protectionist policies of President-elect Donald Trump, who takes office on the 20th of January.
“There was no Santa Claus rally this week (in the session on the 30th, the stock markets also fell), but investors received the gift of a year of gains“, commented to Reuters the CEO of AXS Investments, Greg Bassuk. “2024 was a powerful year for the appreciation of shares, mainly due to three factors: explosion of artificial intelligence, a series of interest cuts by the Fed and a North American economy robust”, he highlighted.
Among the 11 major sectors represented in the S&P 500, telecommunications services, technology and non-essential consumer goods were the ones that gained the most, in percentage, with increases between 30% and 40% in the year.
For their part, healthcare, real estate and energy were the only sectors to record single-digit gains, while the raw materials sector was the only one to fall – falling by around 2%.
For the year as a whole, the valuations of Wall Street indices surpassed those of European and Asian stock markets. And for 2025 the scenario should remain positive, with analysts and economists believing that economic growth in the US will continue, as well as increases in corporate profits. According to the consensus of analysts surveyed by FactSet, the S&P 500 will grow 14.8% in 2025.
Source: www.jornaldenegocios.pt
