2024's Biggest Stock Surges in the U.S. – AI's Dominance & the Rise of the Trump Trade

 

Hey everyone!

2024 is quietly coming to a close, and this year has been nothing short of a wild ride for U.S. stocks. With the S&P 500 surging over 27% and the Nasdaq climbing by 33%, the markets are on fire! The AI boom continues to dominate, alongside some unexpected players shaking up the scene. Let's take a look at the key factors driving such strong performance in U.S. stocks this year and what we can expect for 2025.

 

Looking at the bigger picture, 2024 has been a standout year for the U.S. stock market. Despite some economic challenges, U.S. stocks have maintained strong upward momentum. Economic weakness, impressive corporate earnings, the start of interest rate cuts, and Trump's re-election have all acted as catalysts, contributing to what can be described as a "mega bull market" since 2023. The major indices have reached new highs, and as of December 11, the S&P 500 had climbed by 27% this year, breaking the 6000-point barrier. Meanwhile, the Nasdaq Composite surged over 33%, reaching a milestone of 0.02 million points, exceeding market expectations and capturing global attention.

 

It's also worth noting that the S&P 500 posted a gain of over 24% in 2023. If the index finishes 2024 with another gain of more than 20%, it would mark a rare occurrence—breaking a 26-year-old record of consecutive 20%+ gains in two calendar years.

 

As the year draws to a close, a few stocks have really stolen the spotlight. Among the most surprising was Applovin (APP.US), which saw a mind-blowing 7.5x increase in its stock price. The company's AI-driven marketing solutions helped it become one of the standout performers in the AI space. Right behind it is MicroStrategy (MSTR.US), the crypto and software giant, which saw its stock rise an incredible 550% thanks to the crypto revival.

 

AI-related stocks were the biggest drivers this year. Nvidia (NVDA.US) kept its hot streak alive with a 181% increase, while Palantir (PLTR.US) and Vistra Energy (VST.US) posted impressive gains, with continuous new highs. AI infrastructure providers like Vistra became major players, demonstrating the market's insatiable appetite for all things AI.

 

And it's not just AI. Crypto is back in a big way, with stocks tied to digital currencies taking off. Apart from MicroStrategy, Reddit (RDDT.US), which went public in March, posted a 388% surge. Carvana (CVNA.US) also made a strong comeback, rising nearly 4x after fighting off bankruptcy risk and turning things around in spectacular fashion.

 

 

Another eye-catching story was Tesla (TSLA.US). While the stock struggled for most of the year, it made a dramatic comeback in the final two months, shooting up by 70% thanks to Elon Musk's bet on Trump's return to power. This helped Musk secure his place as the first person to amass a net worth exceeding $400 billion. Talk about a full-circle moment!

 

The major players with market caps above 400 billion didn't sit back. Meta (META.US), Amazon (AMZN.US), and Nvidia (NVDA.US) continue to lead the charge. Meta and Amazon both doubled down on AI, pushing their stock prices to new heights. Meanwhile, the retail stalwart Walmart (WMT.US) quietly gained 80% this year, proving that even in a tech-heavy market, traditional players are still solid performers.

 

 

Looking ahead, Wall Street is feeling bullish, with the S&P 500 forecasted to hit 6400 points next year. Major catalysts like continued corporate buybacks, expected interest rate cuts, and the ongoing impact of a potential Trump presidency have investors excited. No major pullbacks are predicted, and many are betting on more big gains in 2025.

 

So, what's next? Are we going to see another year of AI-driven growth? Will tech stocks continue their dominance, or is there a surprise sector waiting to explode?