By Park-Elm|
2025-01-02T23:56:23+00:00
January 2nd, 2025|Markets|
- Regardless of a pullback in December, U.S. equity markets experienced an epic year in 2024, characterized by 57 all-time closing highs, with the S&P 500® finishing up 25%, closing out the best two-year run since 1998. The S&P 500 Top 50 finished the year even stronger, up 34%, driven by mega-cap strength, robust economic growth, and AI-related optimism.
- Although mid and small caps benefited from the broadening of the rally, amplified by the Presidential election results as enthusiasm ensued for domestically sensitive stocks, inflation jitters and fewer than expected Fed rate cuts led to their recent stark underperformance. The S&P MidCap 400® and S&P SmallCap 600® were up 14% and 9% for the year, respectively, lagging their large-cap peers.
- Most large-cap sectors posted gains in 2024, with Communication Services, Information Technology, and Financials leading the charge, all up more than 30%. Our reported factor indices showed gains across the board, with the S&P 500 Momentum Index having an exceptional year, up an impressive 46%. Growth outperformed as well, benefiting from its exposure to Info Tech, as did the S&P 500 Quality Index, in third place.
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