By the end of 2024, the S&P 500 Index achieved a remarkable annual increase of 23.3%, following a 24.2% rise in 2023. Among the 11 sectors within the index, the communication services sector continued its strong performance, having led gains in 2023. Information technology and consumer discretionary sectors also showed robust growth, primarily driven by major tech companies.
In 2024, 66% of S&P 500 stocks recorded gains, with 67 stocks increasing by over 40%. Notably, Palantir Technologies (PLTR, Financial) led with a staggering 340.5% annual gain, driven by its development of secure data analytics software for government and private enterprises. Palantir is currently the most expensive S&P 500 stock by forward price-to-sales ratio, reflecting optimistic market expectations for its future revenue growth despite its high valuation.
