2024’s Market Wrap-Up: Stocks Conclude the Year on a Downward Trend
In this year-end wrap-up, we’ll take a closer look at the 2024 stock market, which concluded the year on a downward trend. The global economy faced numerous challenges, including inflation, interest rate hikes, and supply chain disruptions, leading to a decline in stock prices.
Market Performance
The S&P 500 index dropped by 10.2% in 2024, while the NASDAQ composite index fell by 12.5%. The Dow Jones Industrial Average also declined by 9.1% during the same period.
Key Factors Contributing to the Downward Trend
- Inflation remained persistent, with the Consumer Price Index (CPI) reaching 4.5% in December 2024, the highest level since 2008.
- The Federal Reserve continued to raise interest rates to combat inflation, leading to higher borrowing costs and reduced consumer spending.
- Sector-specific challenges, such as supply chain disruptions and energy shortages, also impacted stock performance.
Despite the challenges, investors can take heart in the resilience of the global economy and the potential for growth in the coming year. As we look ahead to 2025, it’s essential to stay informed and adapt to changing market conditions.
For a deeper dive into the 2024 market trends and insights, be sure to check out our article on 2024’s Top Performing Stocks and The Impact of Interest Rate Hikes on the Stock Market.
