Stocks Cap Best Two Years in Quarter-Century

U.S. stocks had a stellar 2024, with the S&P 500 climbing 23% and reaching 57 record closes.

This was fueled by a healthy economy, lower inflation, and a surge in AI-driven big tech stocks.

While enthusiasm remains high, investors caution that 2025 may not see the same rapid gains, as interest rates could stay higher than expected, and stocks appear increasingly expensive.

Many sectors, including financials and small-cap stocks, showed strong performance, but there’s concern about the Fed’s cautious approach to rate cuts and the impact of political uncertainties, the Wall Street Journal has reported.

read more: https://www.wsj.com/finance/stocks/stocks-on-pace-for-best-two-years-in-a-quarter-century-c5b5f9b3

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