US Stock Markets Boom in 2024 With Double-Digit Growth

Traders work on the floor of the New York Stock Exchange during morning trading, on Nov. 26, 2024. Michael M. Santiago/Getty Images

Stock markets in the United States are ending the year with significant gains, with 10 out of 11 sectors in the S&P 500 Index seeing positive returns.

All three major indexes have made gains this year. The S&P 500 Index was up 24.54 percent by the end of Dec. 30. The Dow Jones Industrial Average was up 12.88 percent, while the Russell 200 Index, which measures small-cap stocks, has risen by 10.68 percent. NASDAQ, reflecting trends in the tech industry, gained almost 32 percent.

Looking at the S&P 500 sector-wise, communication services have risen the most, by almost 40 percent, followed by information technology by more than 37 percent, consumer discretionary by more than 30 percent, and financials by more than 28 percent.

Consumer staples, industrials, and utilities also made significant gains while real estate, health care, and energy rose marginally. Out of the 11 total sectors in the index, only the materials segment—companies that provide raw materials to other businesses, including miners—registered a decline, falling by just more than 2 percent.

The top-performing company in the S&P 500 this year has been Palantir Technologies, a Colorado-based tech business that has risen by more than 360 percent as of the most recent weekend. Palantir is a data-analyzing software company founded post-9/11 to work with U.S. intelligence agencies. It has a market cap of around $175 billion.

This was followed by business consulting company Vistra gaining more than 262 percent, Nvidia gaining nearly 177 percent, United Airlines more than 141 percent, and energy equipment manufacturer GE Vernova rising by more than 138 percent. Nvidia became the most valuable company in the world in 2024.

Boeing, which has been caught up in intense regulatory scrutiny this year, saw its stocks dip by around 30 percent, while Tesla is up by nearly 74 percent.

According to a recent report from Morgan Stanley, the 2024 stock market “has experienced one of the top momentum runs of the past 30 years.”

“Historically, such strong performance has led to a near-full reversal in performance in the subsequent year, though the middling valuations of momentum stocks temper that conclusion somewhat,” the report said.

The stock market saw a rapid surge after the 2024 presidential race but has been highly volatile over the past weeks, with extensive up-and-down movements. This month, the Dow declined for 10 consecutive days between Dec. 5 and 18, the first 10-day losing streak in the index since 1974.

Amid the stock market surge, there has been a rise in bankruptcies. By the end of November, 634 U.S. corporations filed for bankruptcy this year, potentially on track to hit a new 14-year annual high.

As for key commodities, spot gold prices have jumped by more than 26 percent this year as of 6:35 a.m. EST on Tuesday. Brent crude oil futures have declined modestly by nearly 4 percent.

Markets in 2025

In 2025, JP Morgan is expecting “U.S. exceptionalism” to boost the dollar and risky assets.

“There will be heightened focus on policy changes in the U.S. across trade, immigration, regulatory and fiscal policies. These changes should significantly influence outcomes in the U.S. and beyond,” said Hussein Malik, head of global research.

Dubravko Lakos-Bujas, head of global markets strategy, suggested the United States could continue to be the global growth engine, driven by a robust labor market, an expanding business cycle, and strong AI capital spending.

Goldman Sachs is predicting S&P 500 to rise by 9 percent by the end of 2025. The bank’s baseline scenario sees the economy and company earnings continue to grow while bond yields to remain roughly at current levels in the upcoming years.

However, there are risks such as “an across-the-board tariff” being imposed by the incoming administration and bond yields potentially moving higher.

“As a result, we believe investors should take advantage of periods of low volatility to capture equity upside or hedge downside through options,” said David Kostin, chief U.S. equity strategist at the company.

Stock valuations are currently “high by historical standards” and thus could present a risk for investors, Goldman warned. Over the past two years, the price-to-earnings6 multiple—the ratio of share price to earnings per share—of the S&P 500 has jumped by 25 percent.

“High multiples are weak signals for near-term returns, but typically increase the magnitude of market downturns when there’s a negative shock,” the institution said.

As for precious metals, gold is expected to hit “new record highs” next year, according to a report by ING Bank.

“Central banks are set to continue to ease monetary policy, and there could be a move to safe haven assets due to an escalation in trade tensions. We also believe that central banks will remain strong buyers of gold as they look to diversify their reserves,” it said.

The bank expects the oil market to see “modest demand growth” next year. The market is likely to be in a surplus, with non-OPEC supply growth to remain strong, ING predicts.