The final meeting of 2024 is approaching, marking the end of an unusually smooth year for Wall Street. The S&P 500 Index rose more than 23% during the year, reaching all-time highs. The Dow Jones Industrial Average and Nasdaq Composite also soared to record levels, as enthusiasm for artificial intelligence, a strong economy, loose monetary policy and expectations of future loosening of regulations boosted sentiment. And these results have experienced little turmoil. The S&P 500 has not had a correction at any point – usually defined as a 10% correction. In fact, the benchmark’s largest retracement in 2024 was an 8.5% slide over the summer, well below typical. Since 1980, the S&P 500’s average peak-to-trough decline has been 14.2%, according to the Carson Group. Although the S&P 500 also rose more than 20% in 2023, the market correction did not end in October before rebounding at the end of the year. .SPX YTD mountain S & P 500, YTD The stock market corrects on average once a year, but that doesn’t mean it happens every year. Some tumultuous years, in more ways than one. Carson’s Ryan Detrick points out that there hasn’t been a decline of this magnitude in 21 of the past 44 years. But this market backdrop could cause investors to experience some turmoil in the new year. If the Fed is forced to raise interest rates — or cut rates less than it has indicated — it will undermine market momentum. Other risks include deregulation not progressing as well as investors expect, or the lack of expected big tax cuts if Donald Trump is re-elected. The S&P 500 will end 2024 lower in December and is currently down about 3% from its all-time high.
The stock market has made it all the way to 2024 without major corrections | Real Time Headlines
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