US stocks extended a bull market, with the S&P 500 gaining 25% in 2024—its second year in a row with gains of more than 20%. The Fed lowered interest rates, but the 10-year US Treasury yield moved in the opposite direction. Value stocks lagged growth stocks in the US and globally but fared better in non-US markets.
In particular, consider the remarkable gains in the S&P 500 Index, which was on track to close up more than 25% for 2024, well ahead of Wall Street analysts' forecasts, in one of its strongest annual performances of the last quarter-century.
Banking giant JPMorgan (JPM) expects the U.S. economy to remain strong in 2025, driven by AI-driven investments and better global economic policy. It predicted that the S&P 500 will reach 6,500 by the end of 2025, representing an estimated 9% upside from current levels.
Its analysts predict the S&P 500 will rise 12.6% to end 2025 at 6,666. Savita Subramanian, BofA's head of U.S. equity strategy, expects U.S. cyclical stocks to especially perform well. BMO Capital Markets forecasts the S&P 500 will reach 6,700, reflecting a gain of 13.2%.
A bear market has lasted an average of 14 months. A bull market has had an average lifespan of about 60 months. A bear market has had an average decline of around –33%.
The crypto market bull run saw a significant turnaround in mid-November 2024, with Donald Trump's re-election as the President of the United States acting as a major catalyst. This political shift has reignited optimism among investors, particularly those aligned with pro-business policies.
Global growth forecasts are largely unchanged from last quarter, with the pace of economic expansion in 2024 slowing moderately in 2025. Easing inflation, resilient consumers, and a broadening of central bank rate cuts underpin our expectations for a soft landing.
Wall Street's 2024 projections for the S&P 500 reveal uncertainty, with the average forecast at 4,861, yet the index is trading at 6,014, 23% above estimates. Deutsche Bank predicts a climb to 7,000, driven by robust investor demand and corporate actions like buybacks.
NEW YORK (AP) — What a wonderful year 2024 has been for investors. U.S. stocks ripped higher and carried the S&P 500 to records as the economy kept growing and the Federal Reserve began cutting interest rates.
U.S. Economy Rides a Strong 2024 Finish Into New Year. Gross domestic product is expected to grow between 2% and 2.5% this year. WASHINGTON, D.C. — Economic growth withstood inflation, high interest rates and other challenges in 2024 and should continue to show strength in 2025.
Key Takeaways. While holding or moving to cash might feel good mentally and help avoid short-term stock market volatility, it is unlikely to be wise over the long term. Once you cash out a stock that's dropped in price, you move from a paper loss to an actual loss.
As of summer 2024, the U.S. is not officially in a bear market. This might come as a surprise, especially considering the economic rollercoaster we've been riding since 2020.
Bear markets are largely pessimistic ones, so profits can be realised from short-selling and selling investments early in the bear market. They can also come from buying at the bottom of a bear market or a buy and hold strategy, where traders and investors simply wait out the bear market and ride the price rally up.
It looks like technology, healthcare, and renewable energy industries are growing rapidly in the US. So, if you're considering a career change or investment, these areas are worth looking into.