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Stocks were slightly higher Tuesday, as investors look to wrap up another booming year that hoisted the S&P 500 to its second consecutive annual gain exceeding 20%, spurred by enthusiasm for rate cuts, economic strength and artificial intelligence.
The Dow Jones Industrials started the last session of 2024 with a gain of 94.51 points to 42,668.24.
The broader index inched forward 4.49 points to 5,911.43.
The NASDAQ dropped 43.66 points to 19,443.13.
The S&P 500 has surged 24% in 2024, building on a gain of 24.2% from last year. The two-year gain of around 54% is the best since the nearly 66% rally in 1997 and 1998.
Meanwhile, the Dow has added 13% in 2024, while the NASDAQ has outperformed with a 30% advance.
Developments in Washington, D.C., helped fuel the rally in the second half of the year. The Federal Reserve has cut its benchmark interest rate by a full percentage point since September, bolstering confidence that the U.S. economy can sustain its recent growth. Stocks also rallied sharply following President-elect Donald Trump’s win in November, as traders cheered the prospect of lower taxes and a looser regulatory approach under a Republican administration.
Bank stocks in particular were one group that surged after the election, with JPMorgan and Goldman Sachs now up about 42% and 49%, respectively, year to date. Shares of Tesla, whose CEO Elon Musk is a close ally of Trump, are now up 67% year to date.
Meanwhile, bitcoin has performed even better than the stock market, up 124% for the year and topping $100,000 for the first time.
The market is closed on Wednesday for New Year’s Day.
Prices for the 10-year Treasury lost a bit of ground, raising yields to 4.53% from Monday’s 4.54 %. Treasury prices and yields move in opposite directions.
Oil prices grabbed 45 cents to $71.44 U.S. a barrel.
Prices for gold recovered $9.40 an ounce to $2,627.50 U.S.
