US stocks: Closing the books on a solid 2024
31/12/2024 21:41
** 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.P , 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 .SPLRCL and
Tech .SPLRCT led the way higher with surges of 39% and 36%.
Materials .SPLRCM , down 1.8%, was the sole loser
** Tech .SPLRCT up 36%. Chip stocks .SOX score a solid 19%
rise for the year as AI-darling Nvidia NVDA.O extended its
gains, while Intel INTC.O tumbled
** Consumer Discretionary .SPLRCD up 29%. Cruise stocks
advance as demand strengthens, and GM GM.N shines in rough
year for US automakers, though U.S. restaurant chains grapple
with weak demand, value wars in 2024
** Financials .SPSY 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 .SPLRCU power up roughly 20%. Sector's rise
helped by surging demand for growing AI needs, data center
expansions
** Industrials .SPLRCI add 16%. US defense stocks rise on
higher global military spending, and U.S. airline stocks soar on
strong travel demand
** Energy .SPNY gains >2%. NYMEX Crude futures CLc1 drill
down to support, is it solid? CLc1, at just shy of $72, edges
lower on the year
** Healthcare .SPXHC adds 0.9%. Lilly LLY.N 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.O , Vistra
Corp VST.N and Nvidia NVDA.O , boosted by AI fever, were the
top performers, surging 340%, 258% and 171%. On the flip side,
Walgreens Boots Alliance WBA.O was the worst performer,
falling 64%
** U.S. 10-Year Treasury yield US10YT=RR jumps in Q4, pushes
back over 4.50%. Will rising yields derail equities?
** U.S. Dollar index =USD gains 6.6% for the year
** Gold XAU= 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 BTC= 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 TTAN.O seen as an
encouraging sign for 2025
** SPX performance for 2024:
Comm Svcs 38.9%
Tech 35.7%
Discretionary 29.1%
Financials 28.4%
SPX 23.3%
Utils 19.6%
Industrials 15.6%
Staples 12.0%
Energy 2.3%
Real Estate 1.7%
Healthcare 0.9%
Materials -1.8%
(Lance Tupper and Terence Gabriel are Reuters market analysts.
The views expressed are their own)
((lance.tupper@tr.com
terence.gabriel@tr.com))