Market Review 2024: Stocks Overcome Uncertainty to Notch Another Strong Year

Financial markets showed resilience in 2024, extending the bull market that began in late 2022 as stocks weathered interest-rate changes, uncertainty around the US elections, and the ups and downs of the Magnificent 7 stocks.1 The S&P 500 posted a gain of more than 20% for the second year in a row—the first time that has happened since 1998–99.2 While there were some notable downturns through the year, they were followed by quick recoveries.

Advances in the US and other developed markets led to positive returns globally, as Exhibit 1 shows, although emerging markets lagged developed markets. In the fall, the US Federal Reserve cut interest rates by a half point, which preceded two subsequent quarter-point cuts.3 Overall, US bond prices rose for the year, but US Treasury prices were mixed; the benchmark 10-year fell, pushing its yield above 4.5%.

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