Dow Jones Rises in Final Trading Day of 2024; Nvidia Falls, Tesla Rallies

As the clock struck midnight on New Year's Eve, the Dow Jones Industrial Average (DJIA) closed on a high note, rising 1.5% in the final trading day of 2024. The index, which tracks 30 of the largest publicly traded companies in the United States, was boosted by a strong performance from several tech giants, despite a dip from Nvidia Corporation (NVDA) and a rally from Tesla, Inc. (TSLA).

The DJIA's rise was driven by a mix of positive market sentiment and investor confidence, fueled by the election of Donald Trump as the next U.S. President. Trump's policies, particularly his stance on technology and innovation, were seen as a positive development for the stock market. Additionally, the strong performance of technology stocks, particularly NVIDIA Corporation, contributed to the overall positive market sentiment. The company's strong earnings report and positive analyst recommendations boosted investor confidence in the tech sector, which in turn lifted the broader market.

However, Nvidia's stock price fell slightly on the final trading day, closing at $136.35 USD. This dip can be attributed to profit-taking by investors after the stock's impressive run throughout the year. Despite the slight decline, Nvidia's market capitalization remains at a staggering $3.34 trillion, making it one of the largest components in the DJIA.



On the other hand, Tesla, Inc. rallied on the final trading day, closing at $415.74 USD. The electric vehicle manufacturer's stock price has been volatile throughout the year, fluctuating between a 52-week low of $138.8 USD and a high of $488.54 USD. Despite the mixed performance, Tesla's market capitalization stands at $1.33 trillion, making it a significant player in the DJIA.



Geopolitical events and economic indicators also played a role in the DJIA's performance during the year-end trading session. The global slowdown in the electric vehicle (EV) market, as seen in the performance of companies like BYD, contributed to the Dow Jones' performance. Additionally, the repeal of electric-vehicle subsidies and rollback of fuel-economy regulations under the Trump administration could negatively affect Tesla's sales, according to some analysts.

As we look ahead to 2025, investors should keep an eye on the geopolitical landscape and economic indicators that could impact the DJIA's performance. The election of Donald Trump as the U.S. President, along with the potential repeal of electric-vehicle subsidies and rollback of fuel-economy regulations, could have significant implications for the tech sector and the broader market.