How did global markets perform in 2024?

In this report, “Argaam” highlights the performance of the leading global indices during 2024, which included about 101 indices, of which 75 increased and 26 declined.

Most of the increase in indices last year was driven by the expected conclusion of monetary tightening policies and supported by the shift in some central banks towards interest rate cuts, notably the US Federal Reserve, which reduced rates to stimulate the economy as inflation rates approached target levels.

The technology sector contributed substantially to these hikes as the pace of demand for the sector’s shares grew in conjunction with the artificial intelligence (AI) boom, in addition to President Donald Trump’s policy that focuses on reducing taxes and promoting economic growth.

On the other hand, the report sheds light on the most important economic events that affected global markets, as 2024 witnessed many events that directly affected the movement of trading in the markets, the most important of which were the following:

The US Federal Reserve: Reduced interest rates three consecutive times between September and December 2024 by about 100 basis points, reaching between 4.25% and 4.5%.

Oil: Prices fell by 3% to end 2024 at $74.64 per barrel, mainly affected by the slowdown in global demand resulting from the transition to renewable energy, the slowdown in major economies, and increased production by producing countries, which contributed to extending the output cut by about 2.2 million barrels by OPEC+ until March 2025.

The US dollar index (DXY Index): Achieved 5% gains during 2024 to reach 108.5 points, driven by continued improvement in the labor market and increased consumer spending.

Top gaining indices:

Argentina and Venezuela topped the highest rising indices due to the inflationary pressures facing the countries. The Nasdaq Composite ranked 12th with an increase of 31% due to the decline in the severity of recession fears in the US economy and the higher demand for technology sector stocks. Saudi Arabia’s Nomu-Parallel Market found a place on the list after it rose by 28% in 2024. The list also included the Dubai Financial Market (DFM) in the19th place with gains of 27%.

Most declining indices:

On the other hand, the list of top declining indices included Palestine stock exchange in the third place, mainly affected by geopolitical conditions, followed by Mexico stock index as a result of the International Monetary Fund’s expectations that the Mexican economy will slow to about 1.5% in 2024.

Meanwhile, South Korea’s indices fell affected by political unrest after the impeachment of President Yoon Suk Yeol and imposing martial law, in addition to the weakness of the local currency.

The following table shows the performance of Arab and GCC-countries indices during 2024:

The table below indicates other global indices performance: