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2024 Market Recap & 2025 Outlook

There was no shortage of market-moving events in Q4. The stock market opened the quarter with a slow start in October, but the outcome of the presidential election triggered a broad rally in November….

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Down but not out

U.S. equity indices ended 2024 on a down note but registered strong annual returns—well above the historical averages—for a second straight year. Once again, the Nasdaq Composite index led the way…

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Post-election bid losing steam

The post-election rally lost steam last week amid rising interest rates and less dovish commentary from Fed Chair Powell, sending U.S. equity indices lower. The S&P500 index slid 2%, while the Nasdaq Composite and Russell 2000 dropped 3% and 4%, respectively. A surging U.S. dollar…

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The Trump trade is on!

U.S. equity indices and other risk assets soared after Donald Trump was re-elected as President and the Federal Reserve cut interest rates for a second straight meeting. The Russell 2000 index exploded higher by 8.5%, while the Nasdaq Composite jumped 5.7%. The S&P500 gained 4.6%, eclipsing the $6,000 level for the first time

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Busy week for macro markets

U.S. equity indices ended the week with mixed performance, as rising interest rates and the
looming Presidential election registered a cautious tone with investors. The S&P500 index fell 1%,
while the Nasdaq Composite rose slightly to a fresh record closing high.

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PHLX Semiconductor index plunges

U.S. equities fended off notable semiconductor weakness to finish the week positive, with small-caps outperforming due to financial sector strength. The Russell 2000 index rallied nearly 2%, while the S&P500 and Nasdaq Composite each gained less than 1%.

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Earnings season kicks off!

U.S. equities started the week on the backfoot as Chinese indexes slumped after no additional stimulus details came from officials—but the broader indexes quietly rallied from Tuesday on, bringing the S&P500 to new all-time highs for the 44th and 45th time this year…

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The Federal Reserve Cuts Interest Rates by -0.50%

The major development in 3Q24 was the Federal Reserve’s decision to cut interest rates by -0.50%, the first rate cut of this cycle. It came as the Fed shifted its focus, with unemployment rising to a 33-month high and inflation moving back to target.

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Q4 Look Ahead [Equity Markets]

China’s central bank and politburo unveiled the biggest stimulus package since the pandemic, sending their country’s equity markets soaring and lending support to global stocks

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Growth vs Value Factor chart

Growth vs Value Factor — one of the charts from our research.