Global stock markets saw positive growth in 2024, largely due to falling inflation and the efficacy of the US economy in sustaining its post-pandemic recovery. While Europe and the UK faced challenges, the US led the way in growth among wealthy nations, propelling New York stocks to record highs. The general narrative for 2024 was growth tempered by structural themes, notably technological advancements, even as market volatility occasionally surfaced throughout the year.
Despite initial recession fears, the US economy demonstrated resilience in 2024, avoiding downturn while the eurozone and UK experienced only minor setbacks. This was highlighted by observations from Daniele Antonucci of Quintet Private Bank who emphasized how unpredictable the year was, even as China began to regain economic momentum by year-end. Growing technological markets and the robust surge in demand for semiconductors played crucial roles in the overall market performance.
Notable tech stocks performed exceptionally well, exemplified by Nvidia's staggering 170% increase in valuation as demand for its semiconductor chips surged, driven by the rapid adoption of AI technologies. Other companies, including Alphabet and Meta, also achieved impressive gains, reinforcing the trend of technology outperformance in the equity markets. The S&P 500 reached record highs, prompting analysts to revise their predictions upwards in response to the invigorated market conditions.
As the stock markets soared, the bond market exhibited growing unease among investors who were wary of central banks’ ability to manage inflationary concerns. Dips in stock performance, particularly in December, indicated market fluctuations despite an overall year characterized by growth. According to Bill Blain, the year was a testament to Elon Musk's influence in the markets, notably with SpaceX’s remarkable valuation increase reflecting broader confidence in tech innovation.
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