The best and worst stocks of 2024 had a lot in common

The stock market in 2024 saw significant gains led by artificial intelligence and technology companies, with Nvidia emerging as the standout performer with a 171.2% increase.

Market Overview: The major indices posted strong gains in 2024, with the S&P 500 rising 23.3%, the Nasdaq climbing 28.6%, and the Dow Jones advancing 12.9%.

• AI-driven demand and technological advancement were primary catalysts for market growth
• Interest rate cut expectations provided additional support for equity valuations
• Political developments, including Donald Trump’s electoral victory, influenced sector-specific performance

Top Performers: Nvidia led an impressive rally among technology and AI-focused companies, demonstrating the market’s strong appetite for companies at the forefront of technological innovation.

• Broadcom achieved a 107.7% gain, benefiting from its AI chip development and strategic acquisitions
• Meta Platforms rose 65.4%, capitalizing on improved advertising revenue and AI implementations
• Amazon advanced 46.8%, showing strength in both cloud computing and retail operations
• Wells Fargo gained 42.7%, buoyed by anticipated interest rate cuts and improved banking sector outlook

Underperforming Stocks: Several companies faced significant headwinds, resulting in notable declines.

• Nextracker experienced the steepest decline at -22%
• Stanley Black & Decker fell 18.2% amid challenging market conditions
• AMD dropped 18.1% despite its position in the AI chip market
• Constellation Brands declined 8.6%
• Starbucks decreased 5%, affected by management changes and market dynamics

Looking Ahead: The market’s strong performance in 2024 highlights the growing influence of artificial intelligence on corporate valuations, while also demonstrating how political and monetary policy changes can create both opportunities and challenges across different sectors.