Recap of 2024

2024 Financial Markets Recap

The year 2024 showcased robust performances across key sectors, each driven by unique trends and innovations. ?

Here’s a breakdown of the standout sectors and their year-to-date (YTD) gains:

·?????? Semiconductors: +32.1%

Fueled by rising demand for AI infrastructure and automotive chip technology, the semiconductor industry led the pack with exceptional growth.

·?????? Technology: +28.5%

Advancements in artificial intelligence and strong investments in

digital infrastructure powered significant gains in the tech sector.

·?????? Communication Services: +25.3%

Recovery in digital advertising and the continued expansion of

streaming platforms contributed to strong performance in this sector.

·?????? Healthcare: +9.8%

Breakthroughs in biotech and pharmaceuticals sustained steady growth,

underscoring the sector’s resilience and innovation.

·?????? Consumer Defensive: +6.2%

Despite inflationary pressures, this sector demonstrated stability, driven

by consistent demand for essential goods.

1. Sector Performance Overview

Technology

Year-to-Date Performance: The Technology sector delivered a stellar 28.5% YTD gain, driven by AI growth, semiconductor strength, and infrastructure upgrades.

Key Trends:

• AI Gold Rush: Generative AI and data-driven platforms catapulted cloud and hardware providers.
• Tech Ecosystem Expansion: Companies like Palantir leveraged AI adoption across defense, healthcare, and enterprise analytics.
• EV Market: Tesla rebounded following price stabilization and energy diversification.

Standout Stocks:

• NVIDIA (NVDA): +124% YTD | Record AI GPU demand boosted data center revenues.
• Microsoft (MSFT): +38% YTD | Azure’s AI services and Microsoft 365 Copilot integration thrived.
• Palantir (PLTR): +92% YTD | AI adoption across defense and enterprise systems surged.
• Alphabet (GOOGL): +44% YTD | Recovery in ad revenue and AI innovation delivered growth.
• Meta Platforms (META): +59% YTD | AI-driven monetization strengthened profitability.
• AMD (AMD): +84% YTD | Gains in data center and AI accelerator chips solidified position.
• Apple (AAPL): +16% YTD | Consistent growth in services revenue and product upgrades.
• ASML (ASML): +47% YTD | Benefitted from next-generation chip-making tools.
• Tesla (TSLA): +22% YTD | Resilient EV sales and strong energy segment performance.

Healthcare

Year-to-Date Performance: Healthcare climbed 9.8% YTD, powered by breakthroughs in pharmaceuticals and biotech.

Key Trends:

• GLP-1 Surge: Weight-loss treatments led by Eli Lilly and Novo Nordisk reshaped pharma growth.
• M&A Deals: Consolidation in biotech and drug pipeline partnerships boosted sector confidence.

Standout Stocks:

• Eli Lilly (LLY): +63% YTD | Obesity and diabetes drugs set new sales records.
• Novo Nordisk (NVO): +54% YTD | GLP-1 category leader.
• UnitedHealth Group (UNH): +15% YTD | Steady insurance revenue.
• AstraZeneca (AZN): +12% YTD | Strong oncology drug pipeline.

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Semiconductors

Year-to-Date Performance: The semiconductor industry soared 32.1% YTD, fueling AI infrastructure and automotive chip demand.

Standout Stocks:

• NVIDIA (NVDA): +124% YTD
• AMD (AMD): +84% YTD
• Taiwan Semiconductor Manufacturing (TSM): +48% YTD
• Broadcom (AVGO): +68% YTD

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Consumer Defensive

Year-to-Date Performance: Consumer staples climbed a modest 6.2% YTD, remaining resilient against inflation.

Standout Stocks:

• Walmart (WMT): +21% YTD | Strong grocery and e-commerce.
• Coca-Cola (KO): +8% YTD | Global demand remained steady.
• PepsiCo (PEP): +12% YTD | Healthy snack portfolio growth.

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Communication Services

Year-to-Date Performance: Communication services surged 25.3% YTD, lifted by digital advertising recovery and streaming growth.

Key Stocks:

• Alphabet (GOOGL): +44% YTD | Digital ads rebounded.
• Meta Platforms (META): +59% YTD | AI improvements boosted revenues.
• Netflix (NFLX): +38% YTD | Strong subscriber growth in global markets.

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2. Global Stock Markets

Major Indices:

• S&P 500: +23.5% | Led by AI and tech strength.
• Nasdaq 100: +31.7% | Tech rally driven by NVIDIA, AMD, and Microsoft.
• Dow Jones: +13.2% | Healthcare and consumer staples support.
• Nikkei 225: +20.4% | Corporate reforms and tech exports led growth.
• DAX (Germany): +15.8% | Industrial resilience and tech strength.
• CAC 40 (France): +14.3% | Luxury and energy stocks rebounded.
• FTSE 100 (UK): +2.5% | Stabilized by healthcare and defensives.

European Standouts:

• SAP (SAP): +26% YTD | Cloud growth drove enterprise software.
• ASML (ASML): +47% YTD | Semiconductor tech leader.
• LVMH (LVMUY): +8% YTD | Luxury demand softened in China.
• BP (BP): Flat | Energy demand offset by oil price volatility

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3. Commodities

Metals:

• Gold: +22.5% | Hit record $2,788/oz during summer amid geopolitical risks.
• Silver: +15.3% | Strong industrial and safe-haven demand.

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?Energy:

• WTI Crude Oil: +7.4% | Late-year OPEC+ cuts stabilized prices.
• Natural Gas: -9.8% | Mild winter conditions pressured demand.

?Agriculture:

• Cocoa: +41% | Record prices due to harvest failures in West Africa.
• Coffee: +18.7% | Brazilian production setbacks.
• Orange Juice: +34% | Supply chain issues caused price spikes.
• Rice: +19% | Weather disruptions impacted Asian output.
• Corn: +12% | Global demand for feed and ethanol rose.
• Soybeans: +8% | Strong export demand boosted prices.

Fixed Income

Bonds Performance:

• U.S. 10-Year Treasury Yield: Stabilized around 4.2%, reflecting the Fed’s steady rate outlook.
• Corporate Bonds: Investment-grade bonds returned 6.3%, as credit spreads narrowed.
• Emerging Market Bonds: Gained 8.5%, driven by improved risk appetite and local economic growth.

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?Conclusion

• AI Everywhere: AI became a unifying force, lifting tech, healthcare, and industrials globally.
• Commodity Disruptions: Agriculture saw volatile prices, while gold broke records amid uncertainty.
• Global Resilience: European and Asian equities surged alongside the S&P 500, signaling synchronized growth.
• Bond Stabilization: Fixed-income markets provided stability amid equity volatility.

In summary, 2024 was defined by AI-driven transformation, gold’s historic highs, and agriculture market shocks. Technology, communication services, and healthcare led global equity gains, while bonds offered steadiness and commodities delivered surprises. As markets navigated inflation, geopolitical uncertainty, and innovation, investors witnessed a dynamic and transformative year.

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