Barring a global economic catastrophe, this is very likely to be the case Dow Jones Industrial Average will enter positive territory in 2024. Year to date, the legendary index is up 18.7%. Much of that increase was accounted for by the five biggest winners (so far) among the thirty components. Here’s what each of them has done over the past eleven months to gain so much love from investors.
Most investors will be familiar with these blue chip giants. In descending order of their percentage gain this year, they are Nvidia (NASDAQ: NVDA), Walmart (NYSE:WMT), American Express (NYSE:AXP), Goldman Sachs (NYSE:GS)And JPMorgan Chase (NYSE:JPM).
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|
Company |
Sector |
Share price gain (YTD) |
|---|---|---|
|
Nvidia |
Technology |
173% |
|
Walmart |
Retail |
75% |
|
American Express |
Finances |
62% |
|
Goldman Sachs |
Finances |
57% |
|
JPMorgan Chase |
Finances |
47% |
DATA SOURCE: SLICKCHARTS.COM. NOTE: YTD PRICE GAINS AS OF MARKET CLOSURE NOV. 27.
Nvidia is the hottest tech stock right now, as many have identified it as the best way to capitalize on the artificial intelligence (AI) boom that most of us expect to continue. It helps that the company has cutting-edge products and a strong culture of innovation.
Walmart, meanwhile, has fully and aggressively embraced online shopping. This really makes a difference, and there has been phenomenal growth in the key fundamentals of the business recently.
The other three are pillars of the financial sector that tend to perform better in good economic times. The economy is picking up, especially now that inflation appears to be back under control. Lower interest rates are drawing consumers to bank loans and credit cards, while investment banking services are in demand thanks to still-frothing securities markets.
Some may worry that these high flyers are now overvalued. I don’t feel that way. AI will certainly experience explosive growth and Nvidia must remain a crucial chip supplier. Walmart can still grow its online business, both by its established customers shifting some of their purchases to e-commerce instead of in-person shopping, and by luring customers away from other e-merchants.
Finally, many economists predict continued macroeconomic growth and a decline in inflation – at least in the US
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