S&P 500 Surges in 2024 Despite a Weak Fourth Quarter

Forex - The S&P 500 Index rose in 2024 despite a weaker fourth quarter on Wall Street. The S&P recorded a 10.2% increase in the first quarter of the year, followed by gains of 3.9% and 5.5% in the second and third quarters, respectively. In any other year, investors might not have been disappointed with these figures. However, the index's performance in the first quarter set the bar so high that the subsequent quarters appeared lackluster in comparison. In the fourth quarter of 2024, the S&P advanced only 1.9%.

The relatively weak ending of the year was not enough to derail the S&P's rise in 2024. Following a 24.2% increase in 2023, the index achieved a 23.31% increase in 2024 and recorded a total of 57 all-time closing highs within the year.

Much of the gains in 2024 were driven by artificial intelligence stocks. Nvidia shares surged by 171%, while Broadcom, referred to by a portfolio manager as "the next Nvidia in terms of superior performance potential," rose by 108%.

However, the markets are facing uncertainties this year. Investors will have to contend with the policies of the new Trump administration and potentially higher interest rates than expected for the year, which, among other hurdles, keeps Treasury yields elevated.