U.S. Stocks Wrap Up 2024 With a Mixed Aftermath
It’s a bit like a bad sitcom finale: the actors had a big finale rush, moved the lights up, then struggled to keep the audience glued. That’s a decent way to describe the week that saw the S&P 500 stumble, then wobble with a brief rally, closing out the holiday‑shortened session on a roller‑coaster note.
S&P 500 Eyed the Exit, Nasdaq Stayed on the Ride
Early in the week, the S&P 500 rolled on its fourth straight loss – late‑year traders snatched profits before the big year‑end. But Friday gave it a brief lift: the market bounced back, softening the dip. Still, 2024 was a standout year, with the index smashing a 20%+ gain for the second year running – a high not seen in over 25 years. Nasdaq felt the same spell of luck, posting a 20%+ gain for the sixth time in the last eight years – one in which the tech crowd never had to ask for a coffee break again.
Economic Pulse: Manufacturing Meets Labour
- Manufacturing slowdown – The Chicago Purchasing Managers’ Index slid to 36.9 in December, a plunge that was the darkest in the market’s history since May, extending a 13‑month contraction streak.
- Labour market stays cool – Initial jobless claims dipped to 211,000 (the lowest in eight months), and continuing claims hit a three‑month low of 1.84 million. It’s like the unemployment headlines were all in “time is running out” mode.
Bonds! All the Bonding
U.S. Treasury yields took a gentle dip today, letting municipal bonds thrive thanks to steady Treasury conditions. Corporate bonds – especially the investment‑grade type – benefited from light trading and a solid $15 billion worth of new issues. High‑yield bonds gave a modest bump despite the stock market’s occasional drama.
Europe’s Calm Yet Crunchy Start
The STOXX Europe 600 taken a tiny 0.20% bump, while the UK’s FTSE 100 jumped 0.91% thanks to a weaker pound that made multinationals look snappier. Germany, France, and Italy slid a bit, showing the market’s cautious vibe.
ECB Debate & Inflation Surprises
Spain surprised everyone: December inflation hit an annual 2.8% because of a fuel price rise and core inflation (excluding food and energy) climbed to 2.6%. This stirred debates within the European Central Bank – hawks wanted a slower taper of rate cuts to avoid blowing up inflation, while President Lagarde kept it calm, saying “inflation could hit 2% by 2025.”
UK Housing: Rising, but…
Nationwide’s house price index jumped 0.7% month‑over‑month and 4.7% year‑over‑year, the biggest annual lift since 2022. But mortgage approvals slipped a tad, hinting the housing market’s energy is still on a measured pace.
Japan – Still Positive, One Hangover
- Even with a slight second‑week pullback, the Nikkei 225 ended the year up almost 20%, powered by corporate reforms, buybacks, and a cozy weak yen that gave exporters a nice bounce.
- The yen slid 11% over the year, raising alarms that the Bank of Japan might step in.
- Manufacturing PMI contracted for the sixth straight month, but the trend slowed. Input costs surged while orders steadied.
China’s Numbers: Beer‑Haunted City
Manufacturing data was less than roaring: the official PMI barely etched into expansion territory at 50.1, while the Caixin PMI slipped to 50.5—both disappointingly lower than forecasts. Hard‑to‑see from afar, but home sales in December steadied and rose sharply month‑over‑month, hinting a glow‑up after government intervention. Progress is slow, but it’s bright enough for investors to keep half‑open eyes.
Bottom Line: 2024 is a Rough Ride, but The Wheels Keep Turning
All in all, the global markets tried to hold their heads up high while juggling economic jitters. Investors are watching the next chapters closely, hoping to keep the storyline engaging and not too crazy.
