The financial markets delivered strong performance in 2024 with a surge in the S&P 500 benchmark following a robust 24% growth in the year 2023. This year alone, the index has risen about 10% hitting record highs in March.
Impressively, accelerating technology stocks played a significant role in the upward market trajectory. Tech giants reported significant gains, outmatching other market sectors and contributing to a positive market sentiment.
Further bolstering this bullish momentum, the Federal Reserve adoped a low-interest-rate policy throughout 2024. The move promotes borrowing and investment, driving significant market demand.
Investors’ optimism remained high despite rising geopolitical tensions. Economic indicators and strong corporate earnings continue providing a safety net against possible market downturns.
Value stocks, though not booming as tech shares, demonstrated resilient performance. This stability offers attractiveness to investors wanting to diversify portfolios and mitigate risks.
Despite a bullish market, financial analysts urged caution advising for balanced portfolios given the volatility and unpredictability of the global economy.
International stocks, particularly those outside the U.S., experienced significant growth, with the FTSE All World Ex-US index growing nearly 8% year-to-date. Notably, emerging markets became major players in this growth thanks to the MSCI Emerging Markets Index’s 10% year-to-date growth.
In country-specific performance, China and India led this surge. European stocks, despite global economic volatility, also reported decent growth with a rise in the EURO STOXX 50 Index. Technology and healthcare sectors excelled in the international scene.
Though experiencing growth, international stocks remain vulnerable to market risks and uncertainties, including geopolitical risks. Investors are advised to diversify their portfolios and not solely rely on these stocks for investment returns.
The future of international stocks heavily relies on global economic stability and stronger corporate earnings.
Tech stocks spearheading 2024 market surge
If these conditions hold, the global market could offer lucrative opportunities for investors, although clearly, thorough research and analysis are crucial before investing.
A study revealed that only five stocks from the S&P 500 met set expansion standards. The standard includes a performance increase, analyst support, and a potential price target rise. These stocks are Amazon, Delta Airlines, Marathon Oil Corporation, Micron Technology, and United Airlines.
This reflects the stringency of these standards. Notably, industry leaders like Amazon and innovators like Micron Technology made the list. The bull expectations for Delta Airlines and United Airlines remained despite travel industry challenges, and Marathon Oil was the lone energy sector representative.
United Airlines received the highest rating with a potential upside of 37%. Micron Technology achieved the growth high (28.7%) in 2024. The company, often associated with AI, has potential expansion capabilities, innovative commitments, and strategic partnerships with tech giants like Microsoft and Intel.
Internationally, Vanguard FTSE All-World ex-US ETF listed equities like CATL, NetEase, and Meituan also showed upside potentials.
Green-energy stocks are catching investor attention. Vestas Wind System, a Danish firm specializing in wind turbines, is proving itself lucrative with a potential upside of 28%.
The healthcare sector shows growth with stocks related to pharmaceutical companies and biotech industries. Telecommunication and technology sectors also show potential with stocks like T-Mobile and Alphabet Inc., Google’s parent company, demonstrating steady growth and potential for future success.
The gaming sector shows potential owing to the growing trend of e-sports and online gaming.
Commodities should not be overlooked. They offer a hedge against inflation. Gold and other precious metal stocks, as well as raw materials like copper, provide attractive investment opportunities.
