Frankfurt, New York The US stock exchanges were weaker on the last trading day of the year. The Dow Jones lost 0.2 percent to 36,338 points on Friday. The technology-heavy Nasdaq fell 0.6 percent to 15,645 points and the broad S&P 500 lost 0.3 percent to 4,766 points.
In December, however, the Dow rose 5.4 percent, the Nasdaq 0.7 percent and the S&P 4.4 percent. This gained 10.7 percent in the fourth quarter, the Dow 7.4 percent and the Nasdaq 8.3 percent. Over the year, the price gains were even more pronounced: The Dow rose by 18.7 percent in 2021, the Nasdaq 21.4 percent and the S&P 26.9 percent. All three indices rose for the third year in a row.
In contrast, the year was less brilliant for precious metals. Gold fell regarding four percent, the largest annual loss since 2015. Silver fell by more than eleven percent, the most sharply since 2014. Palladium plunged 22.2 percent, the first annual loss in six years. Platinum lost more than nine percent.
Experts do not initially expect the equity rally to continue at the beginning of 2022. However, they see room for improvement in the further course of the year, albeit not for similarly large leaps as in the past year. “Since the monetary policy support is waning and the pandemic is not over, next year it should come down to a single-digit percentage increase,” said Robert Greil from the Merck Finck bank recently.
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Individual values in focus:
Tesla: The title of the electric car manufacturer slipped by 1.27 percent. After the recall of almost half a million cars in the USA the day before, the electric car maker now has to order vehicles to the workshops in China as well. In the year almost ended, however, the company’s share price, which is one of the few worldwide on the stock market to be valued at more than one trillion US dollars, rose by almost half.
Novavax: The biotech company wants to postpone its application for emergency approval for its corona vaccine for another month. The step announced for the third quarter was postponed to the fourth in August. Novavax shares were 7.6 percent in the red at the close of trading.
More: These eight stocks are the bearers of hope for the stock market year 2022
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Weekly market recap
US Stock Market Wrap-Up: A Review of 2021’s Performance and Comparison to 2024 Trends
As I sit down to analyze the performance of the US stock market in the final trading day of the year, I am reminded of the contrasting fortunes of the major indices. Despite a lackluster end to the year, with the Dow Jones, Nasdaq, and S&P 500 all posting losses, the overall picture for 2021 is one of growth and optimism [[1]].
The Dow Jones, Nasdaq, and S&P 500 all rose significantly over the course of the year, with gains of 18.7%, 21.4%, and 26.9%, respectively. These gains are all the more impressive when viewed in the context of the broader economic recovery, which was fueled by government stimulus checks and low borrowing costs, leading to speculative investing [[2]].
In fact, the S&P 500’s 26.9% gain is a notable feat, marking the third consecutive year of growth for the index. This sustained performance is a testament to the resilience of the US economy and the stock market’s ability to adapt to changing circumstances.
However, not all asset classes performed as well in 2021. Precious metals, including gold, silver, and palladium, posted significant losses, with gold falling by 4% and palladium plummeting by 22.2%. These losses serve as a reminder of the ongoing volatility in global markets and the need for diversification in investment portfolios.
As we look ahead to the current year (2024), the question on everyone’s mind is whether the US stock market will continue to perform well. While it’s impossible to predict the future with certainty, there are signs that the market may be due for a correction. The S&P 500’s 27% gain in 2021, cited in a recent article, has some analysts drawing comparisons to the market’s performance in 2021 [[2]].
While this may be the case, it’s essential to remember that each year is unique, with its own set of economic and market conditions. Investors would do well to remain vigilant and adapt their strategies to reflect the changing market landscape.
the US stock market’s performance in 2021 is a testament to its resilience and adaptability. While the final trading day of the year may have been lackluster, the overall picture is one of growth and optimism. As we move forward into 2024, it’s essential to remain informed and adaptable, with a keen eye on the market’s trends and fluctuations.
References:
[[1]]https://www.marketwatch.com/
[[2]]https://www.insideindianabusiness.com/articles/economy-and-stock-market-is-this-2021-all-over-again
