BUZZ-US stocks: Closing the books on a solid 2024

Wall Street has closed the books on 2024, with the AI boom, rate cuts powering a bull run

S&P 500 index .SPX finishes the month with a 2.5% loss, the quarter with a 2.1% gain, and the year with a 23.3% jump

SPX up 53% over 2023-2024 period, scores biggest rolling two-year gain since 66% run in 1997-1998

Once again, thanks to the Magnificent Seven, gains were skewed by strength in massive growth and technology names; Indeed, when it came to cutting-edge ETF themes, Mag 7 still ruled the roost

S&P 500 growth ETF SPYG.P, with a Q4 dash, ran for the roses, and scored its biggest yearly gain since 2009, topping the ETF investing style factors tote board for 2024

Dow Industrials .DJI rose about 13% in 2024, while the Nasdaq .IXIC advanced about 29%. The small-cap Russell 2000 .RUT gained ~10%

For 2024 SPX sectors, Communication Services .SPLRCL and Tech .SPLRCT led the way higher with surges of 39% and 36%. Materials .SPLRCM, down 1.8%, was the sole loser

Tech .SPLRCT up 36%. Chip stocks .SOX score a solid 19% rise for the year as AI-darling Nvidia NVDA.O extended its gains, while Intel INTC.O tumbled

Consumer Discretionary .SPLRCD up 29%. Cruise stocks advance as demand strengthens, and GM GM.N shines in rough year for US automakers, though U.S. restaurant chains grapple with weak demand, value wars in 2024

Financials .SPSY rally 28% as top US banks advance on rate cuts, revival in deal-making. Under the surface, big banks outperformed with the S&P 500 Banks Index .SPXBK up 34%, while the KBW Regional Banking index .KRX lagged with a near-10% rise

Also, insurers catch up with market benchmark after lagging in 2023

Utilities .SPLRCU power up roughly 20%. Sector's rise helped by surging demand for growing AI needs, data center expansions

Industrials .SPLRCI add 16%. US defense stocks rise on higher global military spending, and U.S. airline stocks soar on strong travel demand

Energy .SPNY gains >2%. NYMEX Crude futures CLc1 drill down to support, is it solid? CLc1, at just shy of $72, edges lower on the year

Healthcare .SPXHC adds 0.9%. Lilly LLY.N rides weight-loss drug wave, posts eighth straight yearly gain, and hospital operators rise. Though health insurers end another year with losses

In terms of individual SPX stocks, Palantir PLTR.O, Vistra Corp VST.N and Nvidia NVDA.O, boosted by AI fever, were the top performers, surging 340%, 258% and 171%. On the flip side, Walgreens Boots Alliance WBA.O was the worst performer, falling 64%

U.S. 10-Year Treasury yield US10YT=RR jumps in Q4, pushes back over 4.50%. Will rising yields derail equities?

U.S. Dollar index =USD gains 6.6% for the year

Gold XAU= advances ~27% in 2024, hits record high of $2,790.15 in late Oct. Though dips in Q4, to end four qtr win streak

'To the moon:' bitcoin BTC= more than doubles in 2024, though crypto stocks mixed

Meanwhile, back in the game: IPO stocks surge in 2024 as 'animal spirits' lift equity markets. This as stellar debut in Dec for software startup ServiceTitan TTAN.O seen as an encouraging sign for 2025

SPX performance for 2024:

(Lance Tupper and Terence Gabriel are Reuters market analysts. The views expressed are their own)

((lance.tupper@tr.com

terence.gabriel@tr.com))