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With just one more full week left in 2024, the US stock market is poised to finish the year on a high point, unless the Federal Reserve delivers a surprise. The Morningstar US Market Index is chalking up a roughly 28% gain for 2024, topping the 26.44% return posted last year. It’s been a lackluster year for bonds, but given the Fed’s earlier rate hikes, ending 2024 even in positive territory isn’t too bad.
What’s been driving the big rally in stocks? As Sarah Hansen reports, there’s more than one factor driving equity prices up in 2024. They range from artificial intelligence to the Fed. Hansen digs into the catalysts for this year’s rally here. It’s a great read.
The markets are holding their own despite shrinking expectations for Fed rate cuts. In fact, the big question for the central bank’s meeting next week isn’t whether it will lower rates (which is widely expected), but if it will put additional rate cuts on hold. Here’s our outlook for the Fed’s December gathering.
Inflation is a big reason many think the Fed may pause. As the latest Consumer Price Index report showed, there’s a reason the phrase “sticky inflation” is back in vogue.
As we noted last week, bitcoin has been another big winner in 2024. What’s next for cryptocurrencies? Valerio Baselli notes that while a crypto-friendly incoming presidential administration supports a bullish outlook, a correction could still happen. Find out here what analysts are predicting for bitcoin in 2025.
Yet another winning investment in 2024: gold. The shiny metal is up 30% this year, having set a record high in October. Lately, however, the gold fever has cooled a bit. Gabe Alpert checks in on what investors have been doing with gold exchange-traded funds.
While the stock market’s rally has lifted valuations across much of the board, some opportunities remain. Check out our monthly screen of Morningstar’s coverage list for undervalued stocks that just raised their dividends. This time around, we’ve got four stocks, including a footwear company that’s a household name.
Lastly, this holiday season, if you’re hunting for gifts for another investor in your life, consider our list of books Morningstar researchers are giving and getting.
Be sure to visit our Markets page for our latest coverage and live stock market updates, along with our weekly calendar of key upcoming data and events.
