Nonetheless, all three major US indices had a formidable 2024. The Dow rose 12.9%, the S&P 500 advanced 23.3%, and the Nasdaq surged 28.6%.
Only one sector had a positive December—Consumer Discretionary, which gained 1.1%. The worst-performing sector in December was Materials, which plummeted 10.8%.
The Federal Reserve cut its key interest rate by 25 basis points, bringing the current target range down to 4.25%-4.50%. Core inflation remained between 3.31% and 3.33% across all three prints between September and November. The prices of gold and major cryptocurrencies Bitcoin and Ethereum all fell lower in December to cap off what was a very positive 2024 for all three.
Short-term treasury yields fell following the Fed’s December 18th rate cut, while longer-term yields climbed higher. The 1-month fell by 36 basis points while the 30-year rose by 42 basis points at the opposite end of the curve.
Bond funds also posted a mixed December as a result of the mixed yield movement. The SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) added 0.4%, while the iShares 20+ Year Treasury Bond ETF (TLT) sank 6.4%.
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