In the year 2024, artificial intelligence (AI) continues to dominate the business world, with major corporations implementing AI for various purposes such as supply chain management, distribution improvements, and customer service interactions. Even the entertainment industry jumps on the AI bandwagon, as TV shows and big-budget movies are now produced using generative AI technology.
However, not all AI stocks see success. Many smaller AI companies fail to deliver on their promises and experience significant losses, with some even plummeting by 90% or more. This includes stocks like C3.ai, Soundhound.ai, Upstart Holdings, and Palantir Technologies.
U.S. Economy Faces Challenges
The U.S. economy experiences a shaky trajectory in 2024. After a modest 2% growth in the first half of the year, it takes a downturn, contracting by 2% in the fourth quarter. This unexpected decline raises concerns about the state of the economy.
Tech Companies Seek New Home
Several tech giants, each valued at over $50 billion, make a surprising announcement in 2024: they intend to move their headquarters from California to Texas, following in the footsteps of Tesla. This shift in location indicates a significant trend of tech companies seeking greener pastures.
Challenges for ChatGPT and Microsoft
Sam Altman faces another setback as he is fired once again from ChatGPT. This time, the separation sticks, leaving Microsoft struggling to monetize its ChatGPT partnership. As a consequence, Microsoft’s stock sees a decline of 15% or more by the end of 2024.
Inflation Concerns and Market Sentiment
Despite a bullish outlook heading into 2024, the markets experience volatility due to inflation concerns. Inflation remains at around 3%-4% throughout the year, leading to anxiety and fear among investors. The Federal Reserve chooses not to cut rates, further impacting market sentiment.
Mixed Performance for Tech Stocks
The Nasdaq 100 shows lackluster performance, with the best-performing megacap tech stock, Tesla, seeing a 10% or more decline in the first half of the year but recovering with a 30-40% increase in the second half. Amazon.com follows as the second-best-performing stock, up 20% for the year, while Alphabet experiences a 15% increase. On the other hand, Apple’s stock drops 5%, and both Microsoft and Broadcom see a decline of 15% or more.
Small-cap stocks shine in 2024, with the Russell 2000 gaining 10% while the S&P 500 slips 5% and the Dow Jones Industrial Average posts a 10% loss for the year.
Bitcoin’s Volatility and Cryptocurrency Crackdown
Bitcoin faces a volatile year, pulling back by 15-20% before its halving event in April. However, cryptocurrencies rally leading up to the event only to experience a 20-30% drop in the following months. Bitcoin stabilizes in the high $30,000s, reaching a bottom around $36,000, and finishes the year at approximately $42,733. Ethereum, on the other hand, ends the year with a decline of over 20%. While some cryptocurrencies, like Bonk and Near, experience significant losses of 50% or more, Dogecoin doubles in value, partially due to the “Elon effect.”
Regulatory efforts gain momentum in the cryptocurrency space as the SEC sees changes in leadership. The enforcement chief takes charge and steps up prosecution against founders of fraudulent cryptocurrency tokens. Coinbase Global faces consequences, settling with the SEC for $7.2 billion, and its CEO, Brian Armstrong, is forced to step down.
The Volatility of the Oil Market
The oil sector becomes one of the most volatile in 2024, with prices fluctuating between $55 and $90 per barrel. The year concludes with oil priced at $77, leaving investors and industry watchers on their toes.
Gold Remains Reliable
Amidst the market uncertainties, gold maintains its status as a safe-haven asset. Investors continue to turn to gold, considering it a reliable store of value in uncertain times.
The source of the article is from the blog coletivometranca.com.br