In 2024, investors focused on two key concerns: Treasury yields and tech stocks, which significantly influenced market movements. DataTrek Research’s Nicholas Colas posits that U.S. and global stocks are in a mid-cycle market without an impending recession. He anticipates similar conditions for 2025, influenced by the behavior of Treasury yields and prominent tech stocks, particularly the “Magnificent 7”. In 2023, the S&P 500’s performance largely relied on these tech leaders, and their trajectory will likely dictate market returns and the competitiveness of U.S. large caps against small caps and international stocks in 2025.
