Infographic: The Top Performing Stock Market Sectors in 2024

In 2024, nearly all S&P 500 sectors posted gains in a year defined by AI enthusiasm and a robust U.S. economy. Overall, 66% of companies ended the year in positive territory as the index achieved its best two-year performance since the late 1990s.
This graphic compares S&P 500 sector returns in 2024, along with each sector's weight in the index.

Graphic created by Visual Capitalist; data from Trading View and S&P Global

Factors That Influenced the Stock Market

Strong growth in digital advertising and solid consumer spending drove gains in the communication services sector in 2024. This sector led the market, followed closely by information technology. A small group of dominant technology companies powered much of the outperformance in these two sectors.

Financial stocks also beat the broader market. The sector had one of the lowest price-to-earnings ratios in the S&P 500. Interest rate cuts and President Trump’s re-election supported bank stocks, as lower rates tend to encourage lending activity. Utilities reversed course from their 2023 performance. Rising electricity demand from AI hyperscalers helped fuel that rebound.

Materials was the only sector to post negative returns. China’s economic slowdown and persistently high interest rates weighed heavily on the sector.

Looking ahead, changing economic and market conditions could affect stock performance differently in 2025.

Investment Risks and Disclosures

Stock values and investment returns fluctuate with market conditions. When investors sell shares, they may receive more or less than the original purchase price. The S&P 500 Index represents a broad segment of the U.S. stock market. It is unmanaged and does not reflect the performance of any specific investment. Investors cannot invest directly in an index. Returns vary over time, especially for long-term investments, and actual results will differ.

A portfolio concentrated in a single industry or market sector may lack diversification. Such portfolios can experience higher volatility and risk. Diversification helps manage investment risk but does not guarantee profits or protect against losses.

Contact ETCPA today to learn ,Infographic: The Top Performing Stock Market Sectors in 2024

📞 +1 718-261-9600
📧 file@etcpa.com
📍 Forest Hills, NY (Corporate Office)