Wall Street's Whirlwind Year Ends with a Sigh

Wall Street ends a remarkable year with declining stocks after record highs propelled by AI growth and Federal Reserve interest rate cuts. The market faced geopolitical tensions, a presidential election, and Fed policy shifts, while looking forward to potential rate cuts and new government policies in 2025.

Wall Street experienced a downturn on Tuesday as investors closed a remarkable year for equities, driven to record highs by the AI boom and Federal Reserve's interest rate cuts. The day's low-volume session marked a stark contrast to the tumultuous yet profitable year overall.

Despite the lack of a year-end rally, 2024 saw significant gains. The Nasdaq surged nearly 29%, while the S&P 500 recorded over a 23% increase, marking its best two-year performance since the late 1990s. The Dow Jones also saw a notable increase of nearly 13%.

Looking ahead to 2025, market projections include 50 basis points of additional Fed interest rate cuts amid uncertainties about the new Trump administration's policies on taxes and tariffs. Investors are advised to be wary of geopolitical impacts, particularly in regions of conflict.

(With inputs from agencies.)