WSJ’s Take On the Year: Market Trends to Watch in 2025
Jan 5, 2025
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Aaron Back, Deputy Editor at The Wall Street Journal covering food and macroeconomics, joins the conversation to dissect the stock market's highs and lows of 2024. They explore AI's pivotal role in stock performances and detail standout companies, like Vistra and Nvidia. On the flip side, challenges faced by Walgreens and Moderna are discussed. The dialogue also touches on market strategies for 2025, the potential impacts of tariffs, and the growing sports gambling economy. A balanced look at risks and opportunities in the evolving market landscape awaits!
AI-related stocks like Palantir and Nvidia showcased remarkable gains in 2024, reflecting strong investor enthusiasm and ongoing market trends.
The decline of companies such as Moderna and Walgreens highlights significant challenges in specific sectors and the need for cautious investment strategies going into 2025.
Deep dives
Stock Market Winners of 2024
The discussion highlights significant performers in the stock market for 2024, focusing on companies that have thrived primarily due to their connections to artificial intelligence. Palantir stands out as the top performer, appreciating over 300%, driven by strong investor sentiment and a passionate community around it. Other notable mentions include Vistra and NVIDIA, with gains exceeding 200% and 150%, respectively, indicating a broad appetite for AI-related stocks. The conversation suggests that the trend of 'cult stocks' and AI adjacency will likely continue to shape the market in 2025, with investors closely monitoring these high-growth sectors.
Stock Market Losers of 2024
In contrast, several companies underperformed significantly in 2024, with Moderna and Walgreens notable among them, down approximately 60% and 50%, respectively. Moderna's decline reflects a decrease in demand for COVID-related vaccines as the public shifts focus, while Walgreens has struggled with various operational challenges. Additional underperformers include Dollar Tree and Intel, which highlight broader issues affecting discount retailers and tech firms due to changing consumer behaviors and market dynamics. This analysis of losers signals that not all sectors fared well, and investors should be cautious of potential continued volatility in these areas.
Future Market Trends for 2025
The conversation examines themes that could emerge in 2025, with a focus on the evolving risk landscape in stock trading, particularly in tech and leveraged ETFs. Concerns regarding a potential inflation shock due to new tariffs emerge as a key issue, emphasizing how supply chain dynamics and increased costs for consumers might affect overall market stability. Additionally, the need for concrete and actionable applications of AI technologies is stressed as crucial for sustaining investor interest and market momentum moving forward. The dialogue reveals a cautious optimism about the market’s adaptability, but underscores the importance of solid fundamentals for continued growth in the years to come.
This week, we have a special market trends episode from the recently relaunched WSJ’s Take On the Week podcast.
AI was a big stock market theme in 2024. We’ve talked about it, and heard it many times. But it was far from the only thing that happened in stocks last year. We saw record-breaking growth from power companies like Vistra. Cult stocks like Palantir and MicroStrategy also had a moment. And of course, Nvidia, a company that needs no introduction, had a blockbuster year.
But where there are winners, there are also losers. The announcement of Walgreens’ potential sale highlighted the challenges within the retail pharmacy sector. Shares of biotech company Moderna also slumped, partly due to waning demand for its Covid-19 vaccine and booster. And discount chain Dollar Tree took a hit as its shoppers showed signs of belt-tightening.
For our first Sunday episode of 2025, WSJ’s Take On the Week co-hosts Gunjan Banerji and Telis Demos are joined by colleagues from WSJ’s Heard on the Street column to discuss 2024’s stock market winners and losers and what those stock performances and other market trends could mean for investors and the economy in the year ahead.