Stocks fell as Wall Street’s year with 20% gains ended quietly

US stocks fell on Tuesday, ending 2024 with an uncharacteristic decline after a tumultuous year of trading.

Standard & Poor’s 500 (^ GSBC) decreased by 0.4%. Dow Jones Industrial Average (^ DJI) fell directly below the flat line, while the highly technical Nasdaq Composite Index (^ IX) led losses by 0.9%.

Despite the weak final stretch, the S&P 500 closed 2024 up 23%, according to Yahoo Finance data. The tech-heavy Nasdaq Composite rose nearly 30%. The Dow Jones Industrial Average had a more modest 13% win.

The S&P’s annual gains nearly match its 2023 performance, posting its highest consecutive annual gains in nearly 30 years.

Super Micro Computer Stock (SMCI) The year 2024 has begun to reap the benefits of beloved artificial intelligence. But the year turned out to be a failure.

Shares of the artificial intelligence server maker were on track for a yearly gain of just 6% Tuesday afternoon — much lower than others Stocks themed AI Which thrived in the bull market of 2024. Despite their positive turnaround for the year in December, Super Micro shares remain well below their highs near $120 in mid-March.

Shares started seeing signs of volatility early this year as the company has been It struggled to meet the high expectations of analysts and investors. The stock’s performance has become increasingly unstable in the latter half of 2024 as Super Micro has faced fallout a report Published by short-selling firm Hindenburg Research, it accuses the server maker of accounting violations, export control violations, and questionable relationships between executives and key suppliers.

Read the full story here about Super Micro’s road trip this year.

Fed’s stance that interest rates will stay “higher for longer” It will extend until 2025even as the central bank cut interest rates three times this year, amounting to a 100 basis point reduction.

Fed Chair Powell was distressed because he expects inflation to remain higher than previously thought — and that change played into officials’ hands. – Reducing the number of expected cuts in interest rates To make next year from four to two.

Inflation has proven stubborn, and with Trump potentially reigniting price pressures through new economic policies, the Fed is preparing to take a cautious approach with any future interest rate hikes.

Market bets on the Fed’s first policy decision of the new year expect interest rates to remain unchanged, with a probability of about 90%, according to the CME FedWatch tool. According to the data, the possibility of the first cut will not come until March.

Retail investors enjoyed another great year by sticking with tried-and-true large-cap technology names that delivered big profits and promised progress in artificial intelligence. Brian Suozzi of Yahoo Finance reports.

The six corporate indices that received the most retail investor inflows were among the most notable tech momentum trades: AMD (AMD), nVidia (NVDA), apple (Apple), palantir (Belter), Tesla (TSLA), Amazon (Amzn). These five names attracted $67.7 billion in total retail flows this year. Nvidia has overtaken Tesla as the most popular stock among retail investors, at least judging by inflows.

Vanda Research It is estimated that the year will end with approximately $265 billion in net new inflows into US markets from self-directed retail investors.

Read more about retail investor interests in 2024 here.

Billionaire investor Bill Ackman is raising new speculation that the Trump administration It could end one of Wall Street’s oldest battles By loosening the federal government’s grip on Freddie Mac (FMCC(and Fannie Mae)So he grew up), Yahoo Financial Reports David Hollerith.

Akman He said Monday on X And that “there is a trustworthy path” to removing the mortgage giants from government custody and turning them into private companies within the next two years. This could lead to an IPO in 2026.

“Trump loves big deals, and this will be the biggest deal in history,” added Ackman, founder of Pershing Square Capital Management. “I’m confident he’ll get it done.”

Shares of Freddie Mac and Fannie Mae — short for the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association — jumped in the hours after Ackman’s comments. They have now risen by 168% and 138%, respectively, since Donald Trump won the election.

Read more about Ackman’s theory of privatizing mortgage giants here.

The last trading day of the year is expected to be disappointing as all three major indexes fell into the red, capping a year of strong gains.

US stocks rebounded on Tuesday, giving investors one last chance to end a tumultuous year of trading even as the final batch of sessions came to a close.

Standard & Poor’s 500 (^ GSBC) fell 0.4% during afternoon trading, while the tech-heavy Nasdaq Composite (^ IX) 0.7% precipitation. Dow Jones Industrial Average (^ DJI) lost 0.3%.

Despite a lackluster trading day, the S&P 500 rose about 23.8% in 2024, according to Yahoo Finance data. The tech-heavy Nasdaq Composite rose nearly 30%. The Dow Jones Industrial Average posted a more modest gain of 13%.

While the end of the year may have put a damper on Wall Street, if you zoom out a bit, the year has showered investors with huge gains.

Standard & Poor’s 500 (^ GSBC) is on track for a 24% gain, consistent with the return from 2023. These consecutive annual gains represent the index’s best performance since 1997 and 1998. This is the best consecutive set of annual increases. Since the run-up to the dot-com bubble.

While analysts don’t expect the benchmark to post another year above 20% – as interest rates may remain high and corporate earnings face higher and higher expectations – 2025 is expected to be another strong year for investors.

S&P 500 earnings are expected to grow 15% year over year in 2025, According to FactSet data, Which fuels another bullish outlook for next year.

President-elect Donald Trump and Federal Reserve Chairman Jerome Powell They’ve clashed beforeThere is a possibility that they will do so again in 2025.

Their collision could unfold in multiple ways, reports Yahoo Finance Jennifer Schoenberger.

If Trump’s economic policies Cause more inflationThat could force the Fed to hit the brakes and back off any expected interest rate cuts. The new administration could make some new noise about reducing the Fed’s independence. or Trump to cut costs Elon Musk — who recently said the central bank is “ridiculously overstaffed” — could seek to overhaul the Fed’s workforce.

Powell said in December that there are still too many unknowns for the Fed to figure out how Trump’s proposed tariffs could affect interest rate setting. However, he said some Fed officials are starting to factor Trump’s proposed policies into their policy assumptions.

Read more about the tensions between the Fed and the incoming White House here.

US stocks rebounded on Tuesday, giving investors one last chance to end a tumultuous year of trading even as the final batch of sessions came to a close.

Standard & Poor’s 500 (^ GSBCThe Nasdaq Composite Index rose 0.2%.^ IX) by 0.4%. Dow Jones Industrial Average (^ DJI) set at 0.2%.

The S&P 500 is up about 23.8% in 2024, according to Yahoo Finance data. The tech-heavy Nasdaq Composite rose nearly 30%. The Dow Jones Industrial Average posted a more modest gain of 13%.