As the final trading day of 2024 came to a close, the U.S. stock market painted a rather unique portrait, with all three major indices closing in the red, marking the end of the year's trading with a hint of disappointmentThe Nasdaq and the S&P 500 particularly exhibited declines for the fourth consecutive trading day.

At 4:00 p.mEastern Time on December 31, 2024, the closing bell rang as the Dow Jones Industrial Average finished down 29.51 points, settling at 42,544.22, a mere 0.07% decreaseDespite the slight drop, this still conveyed an undercurrent of caution in the marketThe Nasdaq was notably more robust in its decline, finishing down 175.99 points at 19,310.79, reflecting a more pronounced 0.9% drop—a clear display of the volatility in tech stocksMeanwhile, the S&P 500 was also unable to escape unscathed, closing down 25.31 points at 5,881.63, which marked a 0.43% decrease.

Looking at the broader year-end perspective provided by Wind data, U.S. markets have shown resilience throughout 2024 with all three indices recording gains

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The Dow exhibited a solid increase of 12.88% over the year; however, it was the Nasdaq that emerged as a standout performer, soaring by 28.64%, which underscored the powerful influence of technology in this market rallyThe S&P 500 also reported a respectable gain of 23.31%. In terms of individual stocks, Nvidia shone like a beacon among others, marking an astounding 171.25% rise for the year, clearly unparalleled in the technology sector 'Big Seven', propelled by the explosive wave of interest in artificial intelligence which acted as a significant catalyst for its stock price surge.

Nevertheless, on the final trading day of 2024, major tech stocks faced a collective downturnTesla, for instance, dropped over 3%. This fluctuation in its stock price remained under scrutiny, possibly due to market adjustments regarding its future delivery expectationsNvidia, despite its extraordinary year-to-date gain, fell over 2%, unable to escape the overarching market correctionsOther tech giants like Google experienced declines exceeding 1%, impacted by fierce competition within the tech sector and shifting market environmentsSimilarly, Facebook's parent company Meta dropped nearly 1%, indicating ongoing challenges associated with business expansion and market competitionOther notable drops included Amazon at 0.86%, Microsoft at 0.78%, and Apple at 0.71%. These tech behemoths all faced market pressure that day.

In contrast, bank stocks predominantly appreciated in valueJPMorgan Chase modestly rose by 0.21%, displaying its stability within the financial realmGoldman Sachs faced a slight dip of 0.14%, reflecting market volatilityCitigroup and Morgan Stanley both showed minor increases, with 0.03% and 0.04% gains respectively, while Bank of America increased by 0.14%. Wells Fargo, however, fell by 0.17%. This mixed performance illustrated certain divergences within the financial sector.

Energy stocks, on that day, stood out with broad increases, marking a focus in the market

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Exxon Mobil climbed over 1%, Chevron also reported gains exceeding 1%. ConocoPhillips rose over 2%, while Schlumberger and Occidental made robust contributions with increases of around 1% and 2%, respectivelyFactors such as the dynamics of supply and demand in the energy market, alongside global economic dependence on energy resources, spurred the rise of energy stocks.

The performance of airline stocks showed a mixed bag of resultsBoeing rose by 0.27% following a series of accident scandals that plagued the company in prior yearsConversely, American Airlines fell approximately 1%, with Delta Airlines down by 0.31%. Southwest Airlines managed a slight increase of 0.21%, but United Airlines dropped over 1%. Various factors influenced airline stock performance, including flight operations, market demand, and industry competition.

Comprehensive reports from international media indicated that the S&P 500 index saw an accumulation rise surpassing 53% over 2023 and 2024 combinedThis marked the highest two-year gain since 1997-1998 when the index had an approximate increase of 66%, emphasizing the robust growth momentum in the U.S. equity markets during this period.

Looking ahead to 2025, Reuters reported that financial markets currently anticipate that the Federal Reserve might pursue additional interest rate cuts of around 50 basis pointsThis expectation has created a semblance of optimism in the market; however, investors remain acutely aware of potential overvaluations and uncertainties related to U.S. government tax and tariff policies

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Such concerns hover over the market like a sword of Damocles, significantly impacting investor decision-making.

Across the Atlantic, European stock markets painted a contrasting picture on December 31, 2024. The London Stock Exchange's Financial Times 100 Index closed at 8,173.02 points, up 52.01 points or 0.64% compared to the previous trading day, indicating a certain vitality within the UK marketThe CAC40 index in Paris also reported a robust performance, closing at 7,380.74 points, with an impressive increase of 67.18 points or 0.92%. Germany's Frankfurt stock market closed for the day, awaiting new trading opportunities.

Meanwhile, international oil prices experienced an upturn on December 31, 2024. At the end of the day, light crude oil futures for delivery in February 2025 rose by 73 cents, settling at $71.72 per barrel, reflecting a 1.03% uptickAdditionally, Brent crude oil futures for March 2025 delivery increased by 65 cents, concluding at $74.64 per barrel, translating to a 0.88% riseThe dynamics of the energy market remain intricately tied to the larger global economic landscape, with the rise in oil prices indicative of market expectations concerning future energy demand.

As for the U.S. dollar index, it also experienced a rise on December 31, 2024. The dollar index, which measures the value of the dollar against six major currencies, increased by 0.33%, closing at 108.487. The fluctuations in the dollar's value exert significant influence on global financial markets, with movements reflecting a variety of factors including capital flows and economic outlooks.