Daily Updates: Fresh Starts
📣 Market review for 2024 and predictions for 2025 📊
In the thrilling rollercoaster ride that was 2024's market, the S&P 500, Nasdaq, and Dow saw their fair share of twists and turns. Here's a recap:
- S&P 500 hustled its way to a 5,882-point mark, notching up a stellar annual gain of over 20%. This remarkable feat brought the index's two-year rally to a whopping 53%. Since 1997-1998, this is the strongest two-year stint the S&P 500's had!
Perks like the AI revolution, with Nvidia (NVDA) skyrocketing 171%, and the Federal Reserve's rate cut cycle were the big drivers.
- Bitcoin and Gold took their turns in the limelight, bringing in gains of 119% and 27% respectively. BTC soared past $100k for the first time, while gold touched all-time highs. Even the US Dollar managed to humor the critics, rising over 7% and ending the year at its highest since November 2022.
- Looking ahead to 2025, analysts hold their breath and crossed fingers for further blue-chip increases, albeit at a more measured pace. The median year-end target for the S&P 500 is a levelheaded 6,600 points, equating to a 12% raise from its current position.
- AI's second derivatives are forecasted to shine. David Kostin, the chief U.S. Equity Strategist at Goldman Sachs (GS), predicts a more balanced market with its "Magnificent 7" performers. He anticipates earnings growth to balance between the 2 groups, emphasizing the value of a portfolio diversified beyond the top seven tickers.S&P 5005,882 (-0.43%)
- And, for the bear-ish among us, Stifel has tossed its plate of cookies low at 5,500 points. Partnered with worries about sluggish economic growth and lingering inflation, the brokerage company even predicts a full-blown pause in rate cuts in 2025.
- AI-powered companies like Vistra (VST) and Texas Pacific Land (TPL) massively profited from the green AI movement. With new partnerships in sight, the sidekick sector of AI tech is predicted to be hot in 2025.Nasdaq19,311 (-0.9%)
- Fool analysts chose 9 admirable, resilient companies that faltered in 2024 but still hold their intrinsic charm. They include Nike (NKE) and Unity Software (U).
- Asit Sharma confidently quips, "We believe Nike's powerful business engine, a blend of innovation, marketing, and profits, will resurface its typical momentum, making a comeback post the pandemic slump."Dow42,544 (-0.07%)
- Kirsten Guerra echoes his sentiments, positing that Unity Software's new leadership and a possible world-dominating mobile gaming database offer a long, promising growth path ahead.
Lastly, Epic's Jason Moser recently polled its members for their 2025 favored stocks outside the Magnificent 7. Share your thoughts on the rivals that may shine simultaneously!
Bitcoin$93,588 (+1.76%)
- For those interested in investing in the finance sector, they might consider looking into the 'Magnificent 7' predicted by David Kostin of Goldman Sachs, as he believes earnings growth will be balanced between the top performers and other tickers.
- In the world of alternative investments, cryptocurrencies like Bitcoin continued to make headlines, with a 119% gain for the year, surpassing $100k for the first time.
- When analyzing the stock market data in the table body (tbody), it's clear that technology-focused companies, such as Nvidia and Texas Pacific Land, had exceptional growth in 2024 due to advancements in AI.
- Investors interested in diversifying beyond top-performing stocks like the S&P 500, Nasdaq, and Dow might consider looking into sectors like green AI, as companies like Vistra and Texas Pacific Land saw significant growth in this area.
