Outsized returns, record highs on nearly a weekly cadence, and low volatility were three major themes of price action in 2024. The S&P 500 posted a total of 57 record highs, marking the fifth-highest number of new highs in a calendar year since 1950. Furthermore, the CBOE Volatility Index (VIX) averaged only 15.5 on a daily closing basis in 2024, well below its historical average close of 19.5 and ranking as the 12th lowest average annual VIX since 1990.

Given the mostly one-way direction of stocks last year and the limited degree of drawdowns experienced on the S&P 500, last year’s price action may seem like an out

Key Takeaways:

• Annual inflation accelerated up to 2.9% in December from higher energy and food prices.
• Stripping out food and energy, core inflation rose 0.2% from a month ago, less than expected and bringing annual core inflation down to 3.2%.
• Airfares rose 3.9% in December, perhaps playing some catch-up from the minimal rise in November. We know from TSA throughput data that demand for travel is still very high, putting upward pressure on travel costs.
• Medical care prices are softening, and prescription drug prices were unchanged in December.
• In a separate release this morning, manufacturers in the New York region reported a s

Key Highlights from the Institute for Supply Management (ISM) Report on Business:

• Economic activity in both the manufacturing and services sectors improved in December relative to the previous month. However, the manufacturing diffusion index remains below 50. Index levels above 50 imply growth; below 50 imply contraction.

• Purchasing managers — those with boots on the ground — reported another increase in prices paid, a sign of nagging inflation pressures for both those in the manufacturing sector and those in the services sector.

• A rebound in manufacturing new orders drove most of the increase in the

With 2024 and the fourth quarter (Q4) behind us, we decided to conduct a deep dive into the key factors that shaped Q4 performance. We’ve highlighted what we believe to be 10 of the key takeaways.

10 Takeaways From Q4

1. Dow, S&P, and Nasdaq Hit Record Highs: The Dow Jones Industrial Average (Dow), the S&P 500, and the Nasdaq Composite each hit all-time highs in Q4, with the tech-heavy Nasdaq rising 6.4%, besting the S&P 500’s 2.4% increase and the Dow’s modest 0.9% gain. The Nasdaq’s impressive performance was largely fueled by the continued strength of technology stocks, pa