U.S. Stock Market Sees Record Highs amid Optimism for 2025

A report highlights the remarkable 2024 performance of the U.S. stock market, with S&P 500 reaching 6,090.27. Positive projections for 2025 and specific stock recommendations for Oracle and MongoDB are discussed, indicating potential growth fueled by interest rate cuts and industry demands.

Date: 15-12-2024

AI Rating: 7

The report details the impressive performance of the U.S. stock market in 2024, especially the S&P 500 index, which reached an all-time closing high of 6,090.27. This notable achievement hints at strong market sentiment and investor confidence moving into 2025.

According to Charles Schwab, the history of interest rate cycles suggests that the S&P 500 typically posts positive returns following the first rate cut. Specifically, the report mentions that in 86% of the past cases, the index has seen gains 12 months post-rate cut. Given that the Federal Reserve initiated a rate cut cycle in September 2024 by reducing rates by 50 basis points, it reinforces expectations for further market growth.

Two specific companies highlighted in the report—Oracle and MongoDB—demonstrate substantial growth potential driven by current market trends. Oracle, despite a slight miss in its recent quarterly earnings, is well-positioned in the AI and cloud service sector, which is rapidly expanding. Its significant revenue coming from cloud services, expected to reach $25 billion in fiscal 2025, showcases the company's robust business model.

MongoDB presents another compelling investment opportunity, having surpassed revenue and earnings expectations in its recent quarter. Despite experiencing a share price drop due to management news, the positive momentum from customer acquisition and the growth of its cloud platform indicates long-term potential.

Overall, the combination of interest rate cuts, the anticipated growth in the S&P 500, and the promising outlook for Oracle and MongoDB suggests favorable conditions for investors looking to capitalize on quality stock opportunities.

Stocks: ORCL MDB