2024 Illustrated Market Review
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Key Takeaways
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Markets displayed remarkable strength in 2024, building on the bull run that began in late 2022.
Stocks adapted to fluctuating and uncooperative interest rates, deep election-related uncertainty, and the ups and downs of the "Magnificent 7" stocks.1 US stocks surged 25% for the year, achieving back-to-back annual gains of over 20% for the first time since 1998–99.2 While periods of volatility emerged, recoveries followed quickly, underscoring the market’s durability.
Another year of strong stock returns risks an emotional response—the flip side of the sinking feeling you might get after a couple of down periods. You probably know by now that it’s risky to sell in a panic when the market drops. But what about when the market just keeps going up?
To some, strong market performance can be exhilarating and inspire optimism about the future. To others, the reaction can be mixed. On one hand, strong returns can create a kind of retroactive FOMO—a wish you had invested more aggressively so you could have made more money. On the other hand, so much growth can sometimes create an opposing sense of dread, a fear of what might come next.
Regardless of your personal results and experience, try to keep in mind:
Successful investing isn’t about chasing the biggest returns; it’s about maximizing your ability to achieve your life goals.
The core of your investment plan isn’t the markets, individual securities, or even returns. It’s about you—your aspirations, values, and vision for the future. What do you and your family hope to achieve in the years ahead? What brings meaning and fulfillment to your life? These are the questions that should guide your financial strategy, not a guess about what might be next.
Market Summary
2024 INDEX RETURNS
US Stocks
2024 INDEX RETURNS
The US stock market posted positive returns for the year and outperformed both non-US developed and emerging markets.
US elections brought a Republican sweep, securing control of the presidency, Senate, and House of Representatives. While political shifts often introduce uncertainty, history demonstrates that markets have maintained an upward trajectory over the long term, regardless of the party in power. Investors can find confidence in the market’s resilience, as it has consistently adapted and grown through evolving political and economic conditions.
Ranked Returns (%) - US
World Market Capitalization - US
Period Returns (%) - US
Past results is not a guarantee of future results. Indices are not available for direct investment. Index results does not reflect the expenses associated with the management of an actual portfolio. Market segment (index representation) as follows: Marketwide (Russell 3000 Index), Large Cap (Russell 1000 Index), Large Value (Russell 1000 Value Index), Large Growth (Russell 1000 Growth Index), Small Cap (Russell 2000 Index), Small Value (Russell 2000 Value Index), and Small Growth (Russell 2000 Growth Index). World Market Cap represented by Russell 3000 Index, MSCI World ex USA IMI Index, and MSCI Emerging Markets IMI Index. Russell 3000 Index is used as the proxy for the US market. Dow Jones US Select REIT Index used as proxy for the US REIT market. Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. MSCI data © MSCI 2025, all rights reserved.
Global Stocks
2024 INDEX RETURNS
Helped largely by the US, global stock markets reached multiyear peaks in 2024.3 Equities, as measured by the MSCI All Country World Index, below, rose 17.5% even as geopolitical tensions remained high, with war continuing in Ukraine and unrest spreading in the Middle East, including the collapse of Syria’s ruling regime in December.4
Going Up
MSCI All Country World Index (net dividends), 2024
Past performance is not a guarantee of future results. In USD. MSCI All Country World Index, net dividends. MSCI data © MSCI 2025, all rights reserved. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio. Headlines are sourced from various publicly available news outlets and are provided for context, not to explain the market's behavior.
The global stock market can be separated into two parts: (1) international developed stocks and (2) emerging market stocks.
(1) International Developed Stocks
Developed international stocks lagged the US, with the MSCI World ex USA Index adding just 4.7%.
Ranked Returns (%) - International Developed 
World Market Capitalization - International Developed
Period Returns (%) - International Developed
Past results is not a guarantee of future results. Indices are not available for direct investment. Index results does not reflect the expenses associated with the management of an actual portfolio. Market segment (index representation) as follows: Large Cap (MSCI World ex USA Index), Small Cap (MSCI World ex USA Small Cap Index), Value (MSCI World ex USA Value Index), and Growth (MSCI World ex USA Growth Index). All index returns are net of withholding tax on dividends. World Market Cap represented by Russell 3000 Index, MSCI World ex USA IMI Index, and MSCI Emerging Markets IMI Index. MSCI World ex USA IMI Index is used as the proxy for the International Developed market. MSCI data © MSCI 2025, all rights reserved. Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes.
(2) Emerging Markets Stocks
Emerging markets fared slightly better, with the MSCI Emerging Markets Index up 7.5%.
Ranked Returns (%) - Emerging Markets
World Market Capitalization - Emerging Markets
Period Returns (%) - Emerging Markets
Past results is not a guarantee of future results. Indices are not available for direct investment. Index results does not reflect the expenses associated with the management of an actual portfolio. Market segment (index representation) as follows: Large Cap (MSCI Emerging Markets Index), Small Cap (MSCI Emerging Markets Small Cap Index), Value (MSCI Emerging Markets Value Index), and Growth (MSCI Emerging Markets Growth Index). All index returns are net of withholding tax on dividends. World Market Cap represented by Russell 3000 Index, MSCI World ex USA IMI Index, and MSCI Emerging Markets IMI Index. MSCI Emerging Markets IMI Index used as the proxy for the emerging market portion of the market. MSCI data © MSCI 2025, all rights reserved. Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes.
Country Results
2024 INDEX RETURNS
Israel recorded the highest country results, while Brazil posted the lowest returns for the year.
Past results is no guarantee of future results. Country returns are the country component indices of the MSCI All Country World IMI Index for all countries except the United States, where the Russell 3000 Index is used instead. Global is the return of the MSCI All Country World IMI Index. MSCI index returns are net dividend. Indices are not available for direct investment. Their results does not reflect the expenses associated with the management of an actual portfolio. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. MSCI data © MSCI 2025, all rights reserved.
Real Estate (REITs)
2024 INDEX RETURNS
US real estate investment trusts outperformed non-US REITs during the year.
The Dow Jones US Select REIT Index rose 8.10%, and the S&P Global ex US REIT Index declined 7.83%.
Ranked Returns (%) - Real Estate
Total Value of REIT Stocks
Period Returns (%) - Real Estate
Past results is not a guarantee of future results. Indices are not available for direct investment. Index results does not reflect the expenses associated with the management of an actual portfolio. Number of REIT stocks and total value based on the two indices. All index returns are net of withholding tax on dividends. Total value of REIT stocks represented by Dow Jones US Select REIT Index and the S&P Global ex US REIT Index. Dow Jones US Select REIT Index used as proxy for the US market, and S&P Global ex US REIT Index used as proxy for the World ex US market. Dow Jones and S&P data © 2025 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved
Commodities
2024 INDEX RETURNS
The Bloomberg Commodity Total Return Index returned +5.38% for the year.
Natural Gas and Soybean were the worst performers, returning -29.92% and -23.36% during the year, respectively.
Coffee and Gold were the best performers, returning +77.89% and +20.30% during the year, respectively.
Ranked Returns for Individual Commodities (%)
Period Returns (%) - Commodities
Past results is not a guarantee of future results. Index is not available for direct investment. Index results does not reflect the expenses associated with the management of an actual portfolio. Commodities returns represent the return of the Bloomberg Commodity Total Return Index. Individual commodities are sub-index values of the Bloomberg Commodity Total Return Index. Data provided by Bloomberg.
Bonds (Fixed Income)
2024 YiELD CURVES
In the fall of 2024, the US Federal Reserve initiated a series of rate cuts, starting with a half-point reduction, followed by two quarter-point cuts. By December, the federal funds rate had been lowered to a target range of 4.25%–4.5%5,6 marking the first reductions since the COVID-19 pandemic-related emergency cuts of March 2020. These moves came amid moderating inflation and mixed signals from the labor market. Inflation remained near multiyear lows, with core consumer prices—excluding food and energy—rising 3.3% year-over-year as of November.7
Bond markets responded with overall price gains, though US Treasury performance was mixed. The yield on the benchmark 10-year Treasury climbed above 4.5% as its price declined. While interest rate changes can create uncertainty for investors, history suggests that market reactions don’t always align with Fed policy. Since 1983, the 10-year Treasury yield has moved in the same direction as the federal funds rate about two-thirds of the time—meaning in roughly one-third of cases, it has gone the other way.
Missed Connections
Movement of the federal-funds rate against the 10-year Treasury yield, January 31, 1983–December 31, 2024
Nor have stocks seemed to follow the Federal Reserve’s policy decisions. Over that same period, average US stock returns have remained similar regardless of whether interest rates were rising, falling, or unchanged.8 This serves as a reminder that markets continuously adjust to new information, including anticipated Fed actions, often pricing in expectations well before policy changes occur.
Within the US Treasury market, interest rates generally increased during the year.
US Treasury Yield Curve (%)
On the short end of the yield curve, the 1-Month US Treasury Bill yield decreased 120 basis points (bps) to 4.40%, while the 1-Year US Treasury Bill yield increased 63 bps to 4.16%. The yield on the 2-Year US Treasury Note increased 2 bps to 4.25%.
The yield on the 5-Year US Treasury Note increased 54 bps to 4.38%. The yield on the 10-Year US Treasury Note increased 70 bps to 4.58%. The yield on the 30-Year US Treasury Bond increased 75 bps to 4.78%.
Bond Yields Across Issuers (%)
In terms of total returns, short-term US treasury bonds returned +3.30% while intermediate-term US treasury bonds returned +2.42%. Short-term corporate bonds returned +4.95% and intermediate-term corporate bonds returned +4.22%. *
The total returns for short- and intermediate-term municipal bonds were +2.07% and +0.29%, respectively.
Within the municipal fixed income market, general obligation bonds returned +0.55% while revenue bonds returned +1.22%. **
Period Returns (%)
* Bloomberg US Treasury and US Corporate Bond Indices.
** Bloomberg Municipal Bond Index.
Past results is not a guarantee of future results. Indices are not available for direct investment. Index results does not reflect the expenses associated with the management of an actual portfolio. Yield curve data from Federal Reserve. State and local bonds, and the Yield to Worst are from the S&P National AMT-Free Municipal Bond Index. AAA-AA Corporates represent the ICE BofA US Corporates, AA-AAA rated. A-BBB Corporates represent the ICE BofA Corporates, BBB-A rated. Bloomberg data provided by Bloomberg. US long-term bonds, bills, inflation, and fixed income factor data © Stocks, Bonds, Bills, and Inflation (SBBI) Yearbook™, Ibbotson Associates, Chicago (annually updated work by Roger G. Ibbotson and Rex A. Sinquefield). FTSE fixed income indices © 2025 FTSE Fixed Income LLC, all rights reserved. ICE BofA index data © 2025 ICE Data Indices, LLC. S&P data © 2025 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. Bloomberg data provided by Bloomberg.
Global Bonds (Fixed Income)
Interest rates generally increased across global developed markets for the year.
In Germany and Canada, short-term interest rates decreased while longer-term interest rates generally increased. In the UK, Australia and Japan, interests rates generally increased.
Realized term premiums were generally negative within global developed markets, as longer-term bonds generally underperformed shorter-term bonds.
In the UK, Germany, Canada and Australia, the short-term segment of the yield curve remained inverted.
Changes in Yields (bps) since December 31, 2022
One basis point (bps) equals 0.01%, so, in the table below, "-56.3" equals -0.563%.
Source: ICE BofA government yield. ICE BofA index data © 2025 ICE Data Indices, LLC.
What Will 2025 Bring?
As we look ahead, and as new leaders get to work in many countries around the world, it’s natural to wonder what impact their policies on taxes, spending, and trade may have on markets. And those are just some questions about 2025 that we know about in January. That’s why: Investors may be best served planning for what could happen rather than trying to predict what will—by having a personalized portfolio that aligns with one’s intentions, and sticking with it.
After all, the market is a reflection of the efforts of companies to solve problems and provide goods and services.
In the long run, innovation has succeeded even amid a changing world.
The beginning of a new year is an ideal moment to refocus on these questions. We encourage you to take this time to reflect. Commonly, we work with those who are looking forward to retirement and want to ensure they have what they need to live comfortably and pursue their passions. Maybe you’re thinking about your family and how you can best provide for their future. Or you might be contemplating trying new experiences that bring you joy, whether it’s taking that bucket list trip, finally learning how to play the guitar, or volunteering at an organization held dear to you.
The markets will continue to have their ups and downs in the coming year. With a strong investment plan and a personalized portfolio, your financial journey won’t be defined by those fluctuations. Instead, it will be shaped by the long-term goals you set and the steps you take to achieve them.
Navigating the complexities of financial markets and life goals can feel overwhelming. Using the best evidence available, we’re here to help shape a way forward that aligns your financial resources with your aspirations. Let’s make 2025 a year of progress, purpose, and partnership.
Regardless of what the future holds, we wish you a successful financial experience in 2025, along with abundant concentrations of health, happiness, and harmonious well-being for you and yours.
Could you use an experienced hand to keep your complete financial picture in focus? As a stronghold for your family's finances, we’re here to help!
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FOOTNOTES & SOURCES
Content was provided by Dimensional Fund Advisors, LP, and adapted by Open Window Financial Solutions, Ltd.
- Joe Light, “The Bull Market Has Lasted 2 Years. Is It Just Getting Started?” Barron’s, October 12, 2024. The Magnificent 7 stocks include Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA, and Tesla. Named securities may be held in accounts managed by Dimensional.
- S&P data © 2025 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio; “Matrix Book 2024: Historical Returns Data—United States,” Dimensional Fund Advisors, May 2024.
- Naomi Rovnick, Dhara Ranasinghe, and Rodrigo Campos, “Markets in 2024: Wall Street’s High-Octane Rally Keeps Investors Captive to the US,” Reuters, December 31, 2024.
- MSCI data © MSCI 2025, all rights reserved. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio.
- The federal-funds rate is the overnight interest rate at which one depository institution (like a bank) lends to another institution some of its funds that are held at the Federal Reserve.
- Christopher Rugaber, “Federal Reserve Signals End to Inflation Fight with a Sizable Half-Point Rate Cut,” Associated Press, September 18, 2024.
- Inflation data as defined by the consumer price index (CPI) from the US Bureau of Labor Statistics; the core CPI is an aggregate of prices paid by urban consumers for a typical basket of goods, excluding food and energy; Megan Leonhardt, “Core Inflation Remains Steady in November,” Barron’s, December 11, 2024.
- From January 1983 to December 2024, the average monthly return for US stocks, as measured by the Fama/French Total US Market Research Index, was 0.89% when there was a target rate increase, 1.21% when there was a target rate decrease, and 1.02% when there was no target rate change.