General Market Commentary as of December 31, 2024
The closing quarter of 2024 showed all US major indices posting positive returns. The S&P 500 was up 2.07%, the
Dow Jones Industrial Average gained a modest 0.51%, and the Nasdaq Composite boasted a 6.17% increase.
US Equity markets led the way, outperforming both Developed markets outside the US and Emerging markets.
Growth outperformed value within Developed markets globally but underperformed in Emerging markets.
In the fixed income space, yield curves showed progress towards normalization. With that said, in the UK,
Germany, Canada, and Australia, the short-term segment of the yield curve remained inverted. Realized term
premiums were generally negative across global developed markets. Shorter-term bonds generally
outperformed Longer-term bonds.
The quarter included two Federal Reserve rate cuts of 25bps in both November and December, but Fed Chair
Jerome Powell indicated a sentiment for fewer rate cuts to occur in 2025. Markets reacted to the news
negatively in the closing weeks of the quarter.
US and global elections took place during the quarter, causing a board rally in early November. The rally faded
as the quarter concluded, but 2024 in its entirety proved to be a strong year for financial markets.
Market Recap
| Tot Return | 3-MO* | 12-MO* | 3-Year* | 5-Year* | Closing Value |
|---|---|---|---|---|---|
| S&P 500 | 2.07% | 23.31% | 7.26% | 12.73% | 5,881.63 |
| Dow Jones Industrial Average | 0.51% | 12.88% | 5.40% | 8.31% | 42,544.22 |
| NASDAQ Composite | 6.17% | 28.64% | 7.27% | 16.57% | 19,310.79 |
Source: Morningstar. The S&P 500, Dow Jones Industrial Average, and NASDAQ Composite are unmanaged indexes. It is not possible to invest in an index. Past performance is no guarantee of future results. * Price only. Does not include dividends.
All overviews and commentary are intended to be general in nature and for current interest, educational purposes and factual reference only and are subject to change based on market and other conditions.
