Key Takeaways
  • Markets: The S&P 500 index posted a total return of 25% for 2024, with modest gains in Q4. However, other asset categories, including non-US stocks and fixed income assets, struggled during the fourth quarter.
  • Economy: The US economy remained strong, supported by positive real wage growth, a solid job market, and high levels of household wealth. Despite some softening, overall employment conditions remained tight.
  • Investments: Large-cap US stocks, particularly in the technology and communications sectors, continued to outperform, with the largest 7 companies driving significant earnings growth.
  • Valuations: Valuations for US stocks are near historically high levels, with the trailing one-year price-to-earnings (PE) ratio well above its long-term average. In contrast, non-US developed-market valuations remain below their historical average.
Get the full white paper
First quarter 2025 quarterly market update
Download PDF

Next steps to consider

Asset Allocation Research Team (AART)

Access economic, fundamental, and quantitative analysis from our Asset Allocation Research Team.

Learn more

Asset Class Overview

Explore strategies and custom solutions across asset classes, designed to help you face your most complex challenges head on.

Learn more

Unless otherwise expressly disclosed to you in writing, the information provided in this material is for educational purposes only. Any viewpoints expressed by Fidelity are not intended to be used as a primary basis for your investment decisions and are based on facts and circumstances at the point in time they are made and are not particular to you. Accordingly, nothing in this material constitutes impartial investment advice or advice in a fiduciary capacity, as defined or under the Employee Retirement Income Security Act of 1974 or the Internal Revenue Code of 1986, both as amended. Fidelity and its representatives may have a conflict of interest in the products or services mentioned in this material because they have a financial interest in the products or services and may receive compensation, directly or indirectly, in connection with the management, distribution, and/or servicing of these products or services, including Fidelity funds, certain third-party funds and products, and certain investment services. Before making any investment decisions, you should take into account all of the particular facts and circumstances of your or your client’s individual situation and reach out to an investment professional, if applicable.
607D4F38CEE44C94B5199EAE121C278B