US stocks closed lower on Tuesday as Wall Street wrapped up a standout 2024. Despite the final-day slump, the S&P 500 ended the year with a 23.8% gain, marking its second consecutive annual increase above 20%. Over the past two years, the index has unofficially risen 53.19%, the largest two-year percentage jump since 1997-1998.
Optimism around artificial intelligence, a strong economy, and Federal Reserve interest rate cuts fueled the year's surge. Nvidia, a key AI player, soared 172% in 2024, while the broader Nasdaq outperformed with a 25% gain. Economic confidence also rose after the Federal Reserve slashed rates by 1% since September. However, December saw profit-taking, with the Dow falling 5.3% for its worst month since September 2022.
At market close, the Dow Jones slipped 0.07%, with Nvidia dropping 1.87%. The Nasdaq 100 fell 0.87%, led by a 4.40% decline in MicroStrategy, while the S&P 500 decreased 0.43%, with NRG falling 2.11%.
The euro rose 0.40% against the dollar in the currency market, trading at $0.96545 at 3:58 pm ET.
