Looking across the range of sizes and styles in the US, investors of all types had reason to celebrate. Growth (B1000G) continued to outperform value (B1000V), but both styles delivered double-digit returns. In large-cap stocks, the Bloomberg Magnificent 7 Index (BM7T) returned a whopping 64%. As in 2023, these stocks were the main contributors to equity returns as diversification did not improve. The Bloomberg 500 Equal Weight Index (B500EQ) returned just 15%, below its 2023 tally. Similarly, small-cap stocks (B2000) have lagged last year’s returns and are still trailing large-cap stocks by a wide margin.
International stock investors had even less to celebrate. Investors investing overseas may be used to persistent underperformance compared to the US market, but the Bloomberg Developed Markets Index (DMEU) ex-US index rose just 5.5%. , the difference in 2024 was quite large. While US-based investors may have been disappointed, an index made up of the same stocks but hedged against dollar strength (DMXUHU) performed slightly better at 13%. The strength of the dollar was certainly a big topic in 2024, with the dollar strengthening against other major currencies throughout the year.
Thematically, investor excitement about artificial intelligence continued to drive the market. The name most associated with this theme is Nvidia, but so have other major companies that have seen their prices rise. The Bloomberg Artificial Intelligence Aggregate Index (BAIAT), which includes names of companies across the AI value chain, rose 35%.
Artificial intelligence requires large amounts of energy, and as its requirements have come into focus, even unrelated names have attracted investor interest. Nuclear energy is attracting worldwide attention as a potential solution to the world’s ever-increasing energy needs. The Bloomberg Nuclear Aggregate Index (BNUAT) identifies and captures the entire nuclear value chain, including names associated with uranium mining, across borders and sectors, all the way to power companies. The index rose 32% last year.
Comparing last year’s performance to 2023’s performance, one might wonder if past performance is actually indicative of future returns. Nevertheless, most forecasters would agree that 2025 will be different as investors face so many important questions. How much will the valuation increase? Will inflation continue its downward trend? What does the new administration expect from American companies? With so much capital flowing in, the Bloomberg Stock Index provides an accurate means for investors to identify investment trends and risks, and to Provides a real-time sentiment measure across , countries, and themes.
Learn more about Bloomberg’s stock index service.
The data and other information contained in this publication are for illustrative purposes only, are available “as is”, are non-binding, and do not constitute advice regarding financial products, but rather the provision of factual information. BLOOMBERG and BLOOMBERG INDICES (the “Indexes”) are trademarks or service marks of Bloomberg Finance LP (“BFLP”). BFLP and its affiliates (including BISL), the Index Administrator, or its licensors retain all ownership rights in the Index. Bloomberg LP (“BLP”) or one of its subsidiaries provides global marketing and operational support and services to BFLP, BISL and its subsidiaries.
