In 2024, global financial markets experienced strong performances, with significant gains across major indices, particularly in the United States. Despite the high rates and rising unemployment, consumer spending was robust boosting the economy.
Key factors that boosted equities:
Strong US economy: US economy growth in 2024 was at 2.9%
Elections: Clear election victory for Donald Trump
Artificial intelligence boom: Optimism around AI growth
Magnificent Seven: Strong gains from the “Magnificent Seven” stocks (Nvidia NVDA, Alphabet GOOGL, Tesla TSLA, Amazon AMZN, Apple AAPL, Microsoft MSFT, and Meta META,— which accounted for over 52% of the market’s total return in 2024.
Equity Markets:
Dow Jones and S&P 500 both ended the year with strong gains, 12.88% and +23.31% respectively. The Nasdaq Composite finished +28.64% higher. In 2023 the return for Dow Jones was 13.5%, for S&P was at 24.23% and for the Nasdaq Composite was at 43.43%.
European indices also registered gains but not as the US counterparts. The UK’s FTSE 100 climbed 5.69% marking the best year since 2021. The DAX index soared by 18.85%, despite the troubles in German economy while the France CAC 40 index ended 2.15% lower amid political and social chaos. In Spain, IBEX 35 Index was 14.78% higher and in Milan the FTSE MIB Index finished 12.63% higher.
In Asia, the Nikkei 225 Index gained 19.22%, the Hang Seng index ended 17.67% higher, erasing all the 2023 losses of 15.14% while the Shanghai Composite index ended also in positive territory with gains of 12.67%. FTSE Straits Times Index finished 2024 16.89% higher. In Bombay, India the S&P BSE Sensex Index ended just 0.45% higher.
Technology sector stocks, especially those involved in the artificial intelligence (AI) frenzy, saw strong gains. Nvidia’s stock joined the Dow Jones index in November, surged by 171.2% after surging 239% in 2023. Broadcom (AVGO) soared 119% in 2024 amid rising AI chip demand. Palantir (PLTR), joined the Nasdaq index in December, soared by 370.4% in 2024.
Stock Markets Performance in 2024
2024 2023
Dow Jones +12.88% (+13.50%)
S&P 500 +23.31% (+24.23%)
Nasdaq Comp +28.61 (+43.33%)
FTSE 100 +5.69% +3.78%
DAX +18.85% (+20.31%)
CAC 40 -2.15% (+16.52%)
FTSE MIB +12.63% (+22.64%)
IBEX 35 +14.78% (+22.76%)
NIKKEI 225 +19.22% (+28.24%)
Hang Seng +17.64% (-15.14%)
Shanghai Composite Index +12.67% (-4.11%)
FTSE Straits Times +16.89% (-0.67%)
Sensex +0.45% (+17.12%)
Stocks Performance in 2024
Palantir (PLTR) +370.4%
Nvidia (NVDA) +171.2%
MicroStrategy (MSTR) +358.94%
Meta Platforms Inc. (META) +69.97%
Apple (AAPL) +35.91%
Tesla (TSLA) +69.36%
Microsoft (MSFT) +13.73%
Amazon (AMZN) +47.77%
Commodities Markets Performance
Commodity markets experienced a strong performance in 2024, with some sectors experiencing significant losses while others managed to hold their ground or even post gains. The World Bank commodity price index dropped by 21% in 2023.
Brent crude oil prices fell by 0.84%, WTI Oil increased by 2.53% and natural gas prices climbed by 27.64%.
Gold, the safe heaven asset, registered strong gains of 29.34% amid two wars, lower interest rates and easing inflation, silver price added 28.06% while platinum finished 2024, 6.74% lower at $910.3.
Agricultural commodities had a mixed picture this year. The prices of wheat (-20%), corn (-1%) and soybeans (-21%) had a negaitve year. Corn was down -1.34% and Wheat was 8.36% lower at 548.75. Soybeans were 20.91% lower at 991. Cocoa prices soared by 175.94% at $11.632 due to low harvest in the Ivory Coast and Ghana. Orange Juice was also among the best performers with gains of 58.1%.
Brent crude oil -0.84%
WTI Oil +2.53%
Natural Gas +27.64%
Gold +29.34%
Silver +28.06%
Platinum -6.74%
Corn -1.34%
Wheat -20.71%
Soybeans -20.91%
Cocoa +175.94%
Orange Juice +58.10
Forex Markets Performance in 2024
The forex markets experienced a volatile year in 2024, mirroring the broader economic and geopolitical uncertainties. Japanese Yen (USDJPY) had a very bad year while the British Pound (GBPUSD) had a strong performance against the US Dollar (USD). Interest rate cuts by the Fed in 2024 put extra pressure on the USD (DXY) but the strong economy offset the impact.
DXY +6.15%
EURUSD -5.62%
USDJPY +8.65%
AUDUSD -7.38%
USDCAD +8.06%
USDMXN +19.73%
USDTRY +18.16%
USDRUB +15.88%
Cryptocurrency Markets Performance in 2024
2024 was a monumental year for cryptocurrency markets after the landmark approval of Bitcoin and Ethereum ETFs by the SEC. Three interest rate cuts in 2024 by the Fed and the election of Pro-Crypto Donald Trump also helped the digital assets. Bitcoin continued to dominate the cryptocurrency market, as reflected by Bitcoin’s impressive rise to $98,342, representing a 116.8% increase.
Bitcoin +116.8%
Ethereum +48.31%
Cardano +97.8%
XRP +300%
Litecoin +66.35%
Monero +38%
Solana +115%
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).
