C1W - Market Commentary Q4 2024

• U.S. equity markets posted returns exceeding 20% for the second consecutive year, marking the first such streak since the 1990s, driven by strong earnings growth, resilient consumer spending, and optimism around pro-growth policy expectations.

• The Fed’s December meeting triggered the worst market selloff since the pandemic, with Chairman Powell signaling a shift toward a neutral policy stance by projecting just two additional rate cuts for 2025, reminiscent of steep losses on prior Fed decision days, such as March 2020 (-12%) and September 2001 (-5%).

• Gold ended the year up 27%, slightly outperforming the S&P 500, as it was bolstered by persistent geopolitical uncertainties, central bank purchases, and investor hedging against inflationary pressures.