Winners and Losers of 2024: A Year of Diverging Fortunes Across Markets
2min read As the curtain closes on 2024, a review of this year's market dynamics reveals significant divergences across asset classes, regions, and sectors. From currency movements to equity indices and commodities, the year has offered standout performances and notable underperformers.
Below is a comprehensive breakdown of the winners and losers in key markets.
Currency Markets: The Dollar Dominates
The US dollar emerged as the clear leader in 2024, gaining against all major currencies. Key factors driving this outperformance included the relative strength of the US economy, a hawkish Federal Reserve, and a Trump election victory that buoyed confidence in domestic growth prospects.
Performance summary against the dollar:
- The British pound declined by 1.4 percent, reflecting a modest pullback.
- The Chinese yuan fell by 2.8 percent amid slowing economic recovery in China.
- The euro dropped 5.7 percent, hampered by lackluster growth across the Eurozone.
- The Japanese yen and New Zealand dollar were the weakest performers, sliding 10.8 percent and 10.9 percent, respectively.
The dollar’s ascent highlights its status as a safe-haven currency during a year of heightened global economic uncertainty.
Equity Markets: Tech Takes Center Stage
Tech stocks drove equity markets higher, with the Nasdaq surging 29.8 percent and the S&P 500 up 23.8 percent. The AI boom, led by Nvidia’s exceptional performance, fueled significant gains across technology and growth-oriented sectors.
Key global indices:
- Japan’s Nikkei climbed 19.2 percent, benefiting from a weaker yen and strong corporate earnings.
- European indices such as the DAX (+18.9 percent) and IBEX (+14.2 percent) performed well, though France’s CAC 40 ended the year down 3.0 percent, dragged lower by political unrest.
- The UK’s FTSE 100 gained a modest 5.0 percent, reflecting a challenging economic backdrop and Brexit-related headwinds.
The Russell 2000, representing small-cap stocks, lagged with a gain of 10.7 percent, highlighting continued investor preference for larger, growth-oriented companies.
Commodities: Cocoa and Bitcoin Steal the Spotlight
The commodities market produced some of the year’s most eye-catching gains and losses. Cocoa prices skyrocketed by 187.3 percent, driven by supply disruptions and robust demand. Bitcoin surged 118.3 percent, breaking the six-figure mark for the first time, with growing institutional adoption and interest from retail investors fueling its rally.
Other notable performances:
- Gold advanced 26.4 percent, driven by its safe-haven appeal amid inflationary pressures and geopolitical uncertainty.
- Natural gas prices surged 66.9 percent, reflecting supply constraints in key markets.
- Crude oil posted mixed results, with WTI crude up a marginal 0.4 percent and Brent crude down 3.2 percent, weighed by concerns over global demand.
- Soybean prices fell 23.0 percent, making it one of the year’s weakest performers, as favorable weather and higher inventories pressured prices.
Market Takeaways and Outlook for 2025
2024 was defined by the dominance of the US dollar, the resurgence of tech stocks, and the stellar performance of select commodities like cocoa and Bitcoin. Conversely, the year underscored challenges for sectors and regions grappling with political and economic headwinds.
Looking ahead, several key questions loom for 2025:
- Will the dollar’s dominance persist as other major economies potentially catch up in growth?
- Can the tech sector sustain its momentum amid growing competition and regulatory scrutiny?
- Will commodities like gold and natural gas continue their upward trajectory, or will market dynamics shift in favor of oil and agricultural products?
As markets transition into the new year, investors should remain vigilant in navigating an evolving global landscape marked by economic uncertainty, technological innovation, and geopolitical shifts. Diversification and adaptability will be essential to capitalizing on opportunities and mitigating risks in 2025.
