Wall Street's Roller Coaster: Tech Stocks and Trump's Influence

Wall Street's main indexes dipped despite a strong two-year performance, impacted by rising Treasury yields and economic policies under Trump. Tech stocks saw gains, with Nvidia and Tesla reaching significant valuations. Volatility looms for 2025, with anticipated rate cuts from the Fed and crypto stocks surging amid Trump's win.

Wall Street's main indexes experienced a slight decline in the final trading session of 2024, as Treasury yields climbed. However, the S&P 500 remains on track for its most significant two-year rally in over two decades, surging more than 50%.

The dramatic rally in technology stocks, fueled by a substantial interest rate reduction by the Federal Reserve and anticipated profits from artificial intelligence, pushed equities to an all-time high in 2024. Despite tech sector declines led by companies like Nvidia, which surged over 170% this year, there's been a notable climb in consumer discretionary stocks.

Towards the year-end, risk appetite improved following Donald Trump's presidential victory. His policies spurred growth in small-cap stocks, with the Russell 2000 hitting record highs, and cryptocurrencies soared, with Bitcoin touching $100,000. Yet, the market faces potential volatility in 2025, with possible rate adjustments instigated by the Fed amid concerns of inflation.

(With inputs from agencies.)