The S&P 500 Index ($SPX) dazzled investors in 2024, soaring over 20% for the second consecutive year. This extraordinary rally was driven by a perfect storm of market catalysts, including the Federal Reserve rate cuts, a closely watched U.S. presidential election, and, of course, an insatiable investing frenzy over artificial intelligence (AI). With inflation cooling, jobs booming, and consumer spending holding strong, the economy showcased its resilience, sparking a wave of optimism that sent the index soaring to dazzling new heights.
Amid this euphoric rally, the tech sector emerged as the undisputed star of the SPX in 2024, with AI dominating the investment narrative. Chip giant Nvidia (NVDA) became the poster child for AI-fueled growth, notching an eye-popping gain of approximately 185.4% over the past year. Other tech behemoths, such as Apple (AAPL) and Amazon (AMZN), also joined the surge. Yet, some companies struggled to catch the wave of 2024’s bullish momentum.
