2024 Markets and Trading Review: Notable Performers
The year 2024 has indeed been marked by remarkable shifts in global markets, with significant growth witnessed by some companies and sectors while their others suffered considerable headwinds. As the year comes to a close, some key developments underpin the dynamic nature of the year across stocks, currencies, and commodities.
European Markets: Mixed Year-End Performance
Spanish economic data showed the country’s EU-harmonized inflation rate reached 2.8% in December from 2.4% in November. Eurozone inflation also jumped to 2.2% in November above the European Central Bank’s target of 2%. The data raises fears that the European Central Bank could delay further rate cuts after its earlier moves to support flagging regional growth.
Stock Winners
Tesla: “Trump Trade” Boost. Tesla had a roller-coaster year, struggling early before sharply rallying after the election. With its CEO Elon Musk cozying up to President-elect Donald Trump, being named one of two co-leaders of the Department of Government Efficiency, investors were upbeat on Tesla. Its fast-tracking of the Cybercab and affordable EVs place
Crypto Stocks: Crypto-related stocks ran hot, keeping pace with Bitcoin after the U.S. presidential election. MicroStrategy rallied almost 400% this year. Robinhood (HOOD) surged more than 200%. Those gains reflect increasing optimism in the crypto world that is hoping for friendly policy under the new administration.
Palantir: AI’s Rising Star. Another winner was Palantir, up almost 400% in 2024. This company did pop even higher due to the state-of-the-art AI solution and its increasing adaption across all industries.
Nvidia: Leveraging AI. Nvidia (NASDAQ: NVDA) kept riding the AI revolution and was up 175% YoY. It has remained a growth investor cornerstone that leverages their leadership in AI-driven technologies to keep demand robust across the board.
Currency Markets: The Dollar Dominates
The dollar index had a big surge, up 6.7% for the year, as expectations for fewer Fed rate cuts and other friendly policies under the new administration mounted. The Japanese yen fell against the dollar, an 11.4% annual decline. Possible hikes from the Bank of Japan in 2025 may claw back some of those losses.
The euro lost 5.7% against the dollar in 2024 and reflects the aggressive rate-cutting cycle from the European Central Bank ECB. Sterling ended the year weaker too, down 1.2%.
Gold and Oil: Telling Different Tales
Gold bucked convention in 2024 to become one of the best-performing assets of the year. This underlined its morphing into a long-duration risk play rather than a traditional safe haven, as it strongly correlated with risk assets such as Bitcoin.
On the other hand, crude oil prices have met headwinds: Brent crude ended the year 4% lower; WTI fell 1.5%, weighed by concerns over slowing demand in China. Yet modest gains in the last week of the year were suggestive of cautious optimism.
Bitcoin: A Stellar Year
Bitcoin was up 116% in 2024 and reached an all-time high of $108K on Dec. 17 2024 before closing the year at $92K. A wallet containing 357 BTC valued at $34.07 million was awakened after 11 years of dormancy, adding mystery to the market. Some analysts believe it will rise to $185,000 by the end of 2025, driven by institutional and governmental adoption.
Looking Ahead to 2025
2024 has laid the ground for more transformations in 2025. Key themes include:
- AI Expansion: Companies like Palantir and Nvidia are well-positioned to benefit from increased AI spending.
- Cryptocurrency Growth: Bitcoin and related assets could see further adoption amid favorable regulatory environments.
- Shifting Monetary Policies: Central banks will balance inflation concerns with growth initiatives, influencing currency and commodity markets.
As the world enters 2025, investors look to position for sectors driving the successes of 2024, while remaining cautious against those headwinds driving this year’s challenges.
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