Stock market today: Stocks slide as Wall Street's year of 20% gains ends on a quiet note
Published On Dec 31, 2024, 4:04 PM
On the last trading day of 2024, U.S. stocks experienced a slight decline, with the S&P 500 falling 0.4% and the tech-heavy Nasdaq losing 0.9%. Despite this drop, the S&P 500 ended the year with a robust 23% gain, marking a strong consecutive performance for two years. The Nasdaq saw an even more impressive 30% rise. Major contributors to this year's performance included significant advances in artificial intelligence and retail investor interest in tech stocks, especially the 'Magnificent Seven.' Meanwhile, broader economic indicators, including a cautious Federal Reserve and expected inflation rates, hint at a mixed outlook for 2025. Investors showed particular interest in stocks such as Nvidia and Palantir, with the latter soaring almost 350% over the year, contrasted by Walgreens Boots Alliance, which plummeted 64%.
Stock Forecasts
PLTR
Negative
Despite a positive performance over the year, the recent stock slip suggests a cooling period may be ahead. Given the Fed's emphasis on high-interest rates, investors may want to approach with caution, especially in the tech sector that has been highly volatile as of late.
NVDA
Positive
Nvidia's strong performance amidst the AI surge positions it well in the coming years, as the demand for AI capabilities continues to grow. Investor interest is likely to remain high given its leading role in this sector.
SMCI
Negative
Super Micro's challenges and low performance relative to AI peers indicate caution for investors looking at the AI hardware space, as volatility and pressure from scandal can lead to continued instability.
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