ACG's December Capital Markets Review

ACG’s December Capital Markets Review

Markets took a cautious stance and declined in December virtually across the board after the Fed indicated that rates may stay higher for longer.
The S&P 500 was down -2.38% for the month but was still up in Q4 and finished the year up +25.02%.
Small Cap followed up a strong November with a weak December, with the Russell 2000 Index falling -8.26% during the month.
The Consumer Discretionary, Info Tech, and Communications Services sectors all finished strong years in positive territory in December. Materials fell -10.72% for the month to finish as the only sector with negative performance in 2024.
Growth outpaced Value in December to widen the calendar year gap between the styles. The Russell 1000 Growth was up +0.88% for the month while the Russell 1000 Value fell -6.84%.
The MSCI EAFE and MSCI Emerging Markets Indexes both struggled for the month and quarter. The EAFE was down -2.27% in December to finish the year up +3.82%, while EM fell -0.14% for the month and rose +7.50% in 2024.
The 10-year Treasury yield spiked to near 4.6% by month-end on a more hawkish tone from the Federal Reserve. Bonds suffered as a result, with the Bloomberg US Aggregate falling -1.64% in December and longer-term Treasuries falling -5.99% as measured by the Bloomberg US Treasury 20+ Index.

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