In 2024, US benchmark equity indexes experienced remarkable double-digit percentage gains, despite a marginal decline on the last trading day of the year. The Nasdaq Composite saw a drop of 0.9%, closing at 19,310.8, while the S&P 500 fell by 0.4% to 5,881.6. The Dow Jones Industrial Average also experienced a slight decrease, losing 0.1% to finish at 42,544.2. The overall performance of the stock market throughout 2024 has been impressive, with the Nasdaq jumping an astounding 29%.
The S&P 500 followed with a notable 23% increase, while the Dow added a solid 13%. Earlier in December, these indexes reached record closing levels, indicating robust investor confidence. Consumer and investor sentiment appears to be soaring as we transition into 2025. A Friday note from D.A. Davidson highlighted that several positive trends from 2024 were further reinforced by the outcomes of the November US presidential elections, which sparked anticipation for pro-growth policies.
This sentiment establishes a favorable environment for equity prices to advance, contingent on the US economy maintaining growth above 2% and corporate earnings exceeding 10%. As a reminder, the markets will observe a closure on Wednesday for New Year's Day. Analyzing sector performance reveals that technology faced the steepest decline on Tuesday, whereas the energy sector emerged as the leading gainer.
The financial landscape on the bond market reflected some movement as well, with the US 10-year yield rising by 2.8 basis points to 4.57%. In contrast, the two-year rate saw a decline of 1.4 basis points, resting at 4.24%. Economically, US home prices soared to new record heights in October. However, a deceleration in annual price growth was reported by the S&P Global division, S&P Dow Jones Indices.
Brian Luke, head of commodities, real and digital assets at S&P Dow Jones, noted that data available prior to the presidential election showcased continuous improvement across the national index. The removal of political uncertainty risk has ignited a rally in the equity market. Observing how homeowners respond to this prevailing market sentiment will be critical moving forward. In a separate report, the Federal Housing Finance Agency reported that home prices increased by 0.4% on a seasonally adjusted basis for October, in comparison to the previous month's unchanged reading of a 0.7% gain.
This recent figure aligns with the consensus in a Bloomberg survey. Looking ahead, the housing industry is poised to enter 2025 with similar challenges that it faced in the previous year, such as fluctuations in mortgage rates and seasonal trade underperformance, according to Wedbush Securities. On a different note, the Federal Reserve Bank of Dallas reported that Texas' services sector activity saw a dip in December, despite a critical revenue gauge showing an increase. On the commodities front, West Texas Intermediate crude oil saw a 1.1% rise, reaching $71.80 per barrel. In company-specific news, shares of Sangamo Therapeutics plummeted by 56%.
The genomic medicine powerhouse announced that its partner, Pfizer, opted not to move forward with the development of a new gene therapy aimed at treating hemophilia A, a serious bleeding disorder. Pfizer itself saw a modest increase, closing up 0.4% on Tuesday. In positive territory, drug manufacturer Moderna experienced a robust 5.6% gain, marking the largest increase in the S&P.
Additionally, shares of Chinese e-commerce platform PDD increased by 2.8% on the Nasdaq, positioning it as the leading gainer of the day. Gold prices rose by 0.8%, now trading at $2,637.70 per troy ounce, while silver experienced a slight dip of 0.4%, settling at $29.30 per ounce. Overall, the equity landscape showcases significant movements as investors and analysts keep a close watch on underlying trends, elections, and economic indicators that will shape the upcoming financial year..