Stocks surged in 2024 even as Americans fretted over US economy

If you invested in the stock market in 2024, chances are you came out pretty well. The S&P 500 and Nasdaq composite index rose to record highs, as investor enthusiasm for artificial intelligence fueled a massive bull run, and investors cheered the Federal Reserve’s shift to lower interest rates. Participants in 401(k) and 403(b) plans also benefited big, with Fidelity Investments reporting that account balances reached their highest averages on record.

The stock market soared despite Americans’ widespread discontent with the economy, highlighting a disconnect between the experiences of many US households and the performance of their investments. US markets outperformed those in Europe and Asia: The S&P 500 gained 23% this year, while the Shanghai Composite Index rose 13%, and the STOXX Europe 600 moved up 6%, earlier this week. The strong performance also came amid expectations of an economic slowdown in 2024.



“There were real concerns over the summer about whether we were once again heading for a hard landing and/or a recession,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute..