In a remarkable display of market strength, the S&P 500 index has ascended to unprecedented levels, securing its third consecutive year of substantial double-digit returns. This impressive performance is largely attributed to the robust growth within the technology sector and a spectacular rally in precious metals. Key players like Nvidia and Micron Technology have been pivotal in driving tech forward, while silver and platinum have delivered their most significant annual gains in decades, defying conventional market expectations.
During the brief Christmas trading period, the S&P 500, closely mirrored by the Vanguard S&P 500 ETF, established new record highs. This achievement positions the index for its sixth year of double-digit expansion within the last seven, underscoring a sustained period of prosperity in the equity markets. The consistent upward trajectory reflects strong investor confidence and underlying economic resilience.
The technology sector proved to be a primary catalyst for Wall Street's upward movement. Nvidia Corp., a leader in graphics processing units and artificial intelligence, experienced its most favorable weekly performance since late October. This surge was propelled by a series of new collaborations focused on advanced AI chip development. A notable agreement includes a non-exclusive licensing deal with AI chip startup Groq, reportedly valued at $20 billion for inference technology, which further solidifies Nvidia's formidable position in the competitive AI landscape.
Micron Technology Inc. also continued its impressive rally, building on the momentum from an exceptional quarterly earnings report. The company has now recorded five consecutive weeks of gains, accumulating ten weeks of positive movement over the past eleven. Micron stands as the second-best performer in the S&P 500 for the year, with its stock value appreciating by approximately 240%, surpassed only by Western Digital Corp. among the index's top gainers.
Automakers based in Michigan have also enjoyed a strong year in the equity markets. General Motors Co.'s shares climbed by 55% year-to-date, marking its best annual showing since its re-entry into public markets in 2010. Ford Motor Co. also saw a significant gain of 38%. In contrast, Stellantis N.V. has lagged behind its counterparts, with its stock projected to conclude the year down by roughly 13%.
On the commodities front, precious metals concluded an truly extraordinary year. Silver's upward momentum remained unchecked, with prices breaching the $75 per ounce mark, largely due to severe supply shortages in Asian markets. This surge has propelled silver's year-to-date increase beyond 150%, representing its most robust annual performance since 1979. Platinum, tracked by the Aberdeen Physical Platinum Shares ETF, also witnessed an astonishing rise of approximately 170%, setting a new record for its annual performance.
The financial markets have recently witnessed significant milestones, with the S&P 500 hitting all-time highs driven by leading technology firms and a historic boom in precious metal valuations, signaling a dynamic and profitable period for investors across various sectors.