If you’ve ever wondered whether investing is worth the hype, 2024 delivered a resounding “yes” to that question. The U.S. markets once again showcased their potential, delivering impressive returns for investors.
The market winning streak in 2024 was fueled by solid economic growth, declining inflation from historically high levels, interest rate cuts by the Federal Reserve and robust corporate earnings. November added yet another big bang to nearly all U.S. stocks as investors drove the market higher after the re-election of President Donald Trump. Trump’s campaign promises, if delivered, could mean cutting corporate taxes as well as the continuation of lower tax policies that were set to sunset under the Tax Cuts and Jobs Act (TCJA) in December 2025.
As more dollars continue to funnel to the consumer, strong economic growth is expected to continue if inflation stays at bay. Trump is also expected to lighten regulation on several key industries, including financial services, adding additional optimism for strong corporate profits in 2025 and beyond.
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Adding fuel to the fire, the artificial intelligence (AI) boom ignited a second consecutive year of outsized gains for Big Tech stocks, which not only soared to new heights but also propelled the broader market upward. This perfect storm of favorable conditions created a rewarding landscape for smart investors who had their money working for them in the market.
Let’s break it down, highlight some big wins and see how your money could have grown.
A stellar year for U.S. stocks
The S&P 500, a collection of 500 of the largest companies in the U.S., is often used as a snapshot of how the stock market and economy are performing. In 2024, the S&P 500 climbed an impressive 23%, building on a strong 24% gain from the year before. Together, these two years delivered a remarkable compound 53% total growth, the best two-year performance since the late 1990s.
If you had invested $10,000 in the S&P 500 two years ago, your investment would now be worth about $15,300. This shows the power of consistent investing in a diverse group of successful companies over time!
Tech dominates again
Technology stole the spotlight in 2024, with the Nasdaq Composite Index — home to many of the world’s biggest tech companies — soaring more than 28%. If you’d put $10,000 into the Nasdaq at the start of the year, it would now be worth $12,800. And that’s on top of an incredible 84% jump from 2022-2024! Over two years, your $10,000 investment would have grown to an impressive $18,400.
Driving much of this growth were the Magnificent 7 tech giants: Apple (
Read More: For Investors, 2024 Was a Year to Remember
