Stocks slip but cap off 2024 with a 2nd straight year of 20% gains

• Stocks slipped in the final trading session of 2024.
• Still, the S&P 500 gained over 20% for the second year in a row.
• Other markets also notched records in a blockbuster year.

US stocks dipped in the final trading session of 2024, but weakness in the waning days of the year did little to dent the market's massive annual gain.

Investors in 2024 enjoyed a second consecutive year of gains over 20% for the benchmark S&P 500 amid soaring excitement for artificial intelligence, interest rate cuts, and Donald Trump's return to the White House.

The benchmark index surged over 23% for the year, just behind a 29% gain on the Nasdaq Composite. The Dow Jones Industrial Average climbed nearly 13%.

The AI frenzy continued to reward chipmakers and software firms with ties to the space, ballooning the market capitalization of the Magnificent Seven. The year saw Nvidia soar past a $3 trillion market cap to briefly overtake Apple as the most valuable company in the world.

Though the tech rally deepened fears of an over-concentrated market, the bull run broadened out in 2024. Utilities, which power AI, have benefited heavily.

In the second half 2024, progress on inflation and the surprising strength of the labor market gave the Federal Reserve room to start easing policy, amplifying risk appetite. Recession concerns, having lingered in 2023, were dispelled completely.

Stocks went on to rally steeply ahead of November, as Trump's election fueled excitement for deregulation and tax cuts.

But the rally wasn't confined to equity markets.

2024 proved an epoch-making year for bitcoin, with the token rising past the six-digit mark for the first time ever. Commodities, from gold to cocoa, achieved their own records.

Having reaped such gains without even one correction in the past two years, investors are now facing a wall of uncertainty.

Indexes wavered in the final sessions of 2024, as traders questioned the outlook for interest rates and grew skittish about the sustainability of the red-hot rally.

While no major analyst expects the bull run to end, some say investors should brace for corrections and weaker growth.

The stock and bond market will be closed on Wednesday for New Year's Day.

For economic data this week, investors will be watching for the initial jobless claims on Thursday, followed by ISM manufacturing data on Friday.

Here's where US indexes stood at the 4:00 p.m. closing bell on Tuesday:

• S&P 500: 5,881.79, down 0.43%
• Dow Jones Industrial Average: 42,544.72%, down 0.07% (-29.01 points)
• Nasdaq composite: 19,310.79, down 0.90%

Here's what else happened:

• A stock correction looms as recession fears will resurface in 2024, Jim Paulsen says.
• 5 charts show a wild year for markets in 2024.
• Bitcoin is flashing a sell signal that's pointing to a 10% drop ahead, a technical analyst says.
• Investors need to dial back risk-taking as stock valuations are being driven by euphoria, research firm says.
• 12 US billionaires gained almost $1 trillion in wealth in 2024 as the stock market delivered another year of massive returns.
• 4 things need to happen for the stock market to continue its record rally in 2025.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil climbed 1.2% to $71.83 a barrel. Brent crude, the international benchmark, rose 1.14% to $74.83 a barrel.
• Gold increased by 0.73% to $2,637.1 an ounce.
• The 10-year Treasury yield rose two basis points to 4.573%.

Bitcoin slipped 0.8% to $93,416.