Wall Street closed 2024 on a high note, buoyed by an ongoing AI boom, interest rate cuts, and the resilience of the U.S. economy. The S&P 500 (SPY), Dow Jones Industrial Average (DIA), and Nasdaq Composite (QQQ) edged higher on the last trading day, capping a year that saw significant gains across key sectors like technology, communications services, and consumer discretionary. The Federal Reserve's 100-basis point rate cut over the year also helped sustain bullish sentiment.

Nvidia (NVDA), a standout in the AI space, surged more than 170% this year, crossing the $3 trillion market cap threshold. Tesla reclaimed its $1 trillion valuation as Elon Musk's electric vehicle juggernaut saw strong gains. Meanwhile, small-cap stocks, led by the Russell 2000 index (RUT), hit record highs, supported by optimism around Donald Trump's return to the White House and expectations for pro-business policies, including deregulation and tax cuts.

The year's rally also invigorated cryptocurrency-related stocks, with Bitcoin breaching the $100,000 mark. MicroStrategy (MSTR), Coinbase (COIN), and MARA Holdings (MARA) posted significant gains, highlighting renewed interest in digital assets. However, December brought some turbulence as Treasury yields climbed, putting pressure on equity valuations. Investors now turn to 2025, with market movements likely to be shaped by Trump's economic policies and earnings clarity from major tech players.

As Wall Street anticipates the first rate cut of 2025, analysts remain cautious about stretched valuations and geopolitical uncertainties. With AI and crypto continuing to drive market narratives, the coming year promises both challenges and opportunities for investors.