Wall Street Defies Recession Fears with Record-Breaking First Half of 2024
Despite closing slightly lower on Friday to cap the week and month, Wall Street blazed through the first half of 2024 with unprecedented gains fueled by robust earnings and AI enthusiasm. Year-to-date, optimism reigns as analysts predict further records later this year.
Friday’s data from a key inflation indicator buoyed hopes that easing price pressures could prompt the Fed to consider rate cuts as soon as September.
The S&P 500 (^GSPC) retreated approximately 0.4% at the close but boasts nearly a 15% surge for the year so far. The Nasdaq Composite (^IXIC), led by tech, saw a 0.7% decline but achieved an impressive nearly 19% year-to-date increase. The Dow Jones Industrial Average (^DJI) slipped 0.1% on Friday, reflecting a more modest 4% gain overall this year.
The stellar performance of the “Magnificent Seven” has been instrumental in driving the market rally, with Nvidia (NVDA) standing out as a prime example of AI’s impact, soaring 150% this year.
Despite a strong start, recent uncertainties, particularly surrounding Nvidia, have sparked concerns about potential pullbacks in the latter half of the year.
Looking ahead, investors are mindful of risks such as the upcoming US election, noting President Joe Biden’s recent debate performance against presumptive Republican nominee Donald Trump. Trump’s proposed policies, including tax cuts and trade measures, are viewed as potential catalysts for market growth, contrasting with a 10% decline in shares of Trump Media & Technology Group (DJT).
