Stock Markets and Bitcoin Smash Records in 2024
Despite political turmoil, the year 2024 witnessed a remarkable surge in stock markets and bitcoin prices, driven by a fervor for Artificial Intelligence (AI), declining interest rates, and expectations of tax reductions.
Record Highs on Wall Street
During the year, Wall Street's major indices reached unprecedented levels, with the Dow Jones Industrial Average surpassing 45,000 points, the S&P 500 crossing 6,000, and the Nasdaq Composite exceeding 20,000.
Tech Shares Lead the Way
"The exceptional performance of tech stocks, particularly those involved in artificial intelligence, was a key driver of the market's success in 2024," stated Christopher Dembik, a senior investment advisor at Pictet Asset Management.
European Markets Follow Suit
While Europe also experienced record-breaking market highs, the gains were more moderate compared to those in the United States.
Global Technological Giants
The Magnificent Seven, comprising companies like Alphabet (Google), Amazon, Apple, Meta (Facebook), Microsoft, Nvidia, and Tesla, continued to showcase their technological prowess and influence in the market.
Political Developments and Market Sentiment
Market sentiment was further bolstered by Donald Trump's victory in the U.S. presidential election, as investors anticipated his promised deregulation and tax policies to drive economic growth.
2025 Outlook and Concerns
As the new year unfolds, investors are closely monitoring Trump's proposed tariff increases and the upcoming early elections in Germany scheduled for February.
Bitcoin and Gold Surge
Expectations of deregulation under Trump propelled Bitcoin past $100,000, marking a significant increase, while gold reached new heights due to its status as a safe-haven asset amidst geopolitical tensions.
Commodities Reach New Heights
Commodities like coffee and cocoa also experienced record highs in 2024, influenced by supply concerns arising from adverse weather conditions.
