10 charts that tell the story of markets and the economy in 2024

Published On Dec 30, 2024, 6:00 AM

In 2024, the stock market has reached record highs with the Nasdaq and S&P 500 experiencing substantial gains due to strong corporate earnings and a broader rally in the market. The Federal Reserve initiated its first interest rate cut in four years, fostering a positive economic outlook. The U.S. economy demonstrated resilience with robust retail sales and a stable employment rate even amidst a tumultuous presidential election. Strategists predict continued earnings growth in 2025, setting a bullish expectation for the markets moving forward.

Stock Forecasts

QQQ

Positive

Investors should consider technology stocks that have significantly benefited from the bullish sentiment, especially those among the 'Magnificent Seven'—Nvidia, Tesla, Alphabet, and others—as they are expected to continue their growth trajectory into 2025.

IWM

Positive

With the Small Cap sector expected to benefit from the Trump administration's policies, including lower taxes and potential deregulation, small-cap stocks could see a resurgence, making the Russell 2000 an attractive investment option.

SPY

Negative

Despite some nearing unrealistically high valuations, the S&P 500's mixed results signal caution in the broader market. Investors should stay vigilant about potential corrections fueled by inflation concerns, particularly in markets heavily impacted by tariffs and international trade policies.

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