The biggest risk for stocks could be “what some consider potentially disruptive economic and social policies that have been proposed by the incoming Trump administration,” Daniel Jones, an analyst at Seeking Alpha, wrote in a note.
At this time last year, many analysts were worried that the financial markets would turn in a decent but not especially strong performance in 2024.
They should have been more optimistic. However, the S&P 500 rose 23.3 per cent in 2024, far exceeding what the experts had predicted. It was the second straight year that the benchmark stock index rose more than 20 per cent, overcoming geopolitical uncertainty and the lingering effects of higher prices on consumers’ finances, as per the NYT News Service.
After the Federal Reserve raised interest rates in 2022 to cool down raging inflation, markets tumbled. The S&P 500 ended that year down nearly 20 per cent, as Wall Street anticipated that the economy would fall into a recession. Experts predicted that the benchmark index would rise by 6 per cent in 2023 and just 3 per cent in 2024, NYT News Service reported.But instead, the index grew by more than 20 per cent in both 2023 and 2024. The economy dodged a recession, even as consumer confidence slipped and voters blamed President Joe Biden for his handling of the economy, according to NYT News Service.
FAQs
Q1. When is Donald Trump’s inauguration ceremony?
A1. Donald Trump’s inauguration ceremony is on January 20.
Q2. What is US stock market’s key index?
A2. US stock market’s key index is S&P 500 index.
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