Grasp the Leading Financial Barometers: A Comprehensive Guide to the Global Stock Market and Notable Stocks to Watch in 2024

The Importance of the Global Stock Market and the Role of the United States

The international stock market is becoming a focal point attracting traders from all over. In this context, the United States plays a crucial role, holding 75% of the global market capitalization. This is currently the largest market in the world, with leading companies such as Amazon, McDonald’s, Google, and many other corporations.

The two main stock exchanges managing US securities trading are the New York Stock Exchange (NYSE) and Nasdaq. According to estimates from Intercontinental Exchange, as of September 30, 2022, the total market value exceeded $46.5 trillion, with NYSE accounting for over $30.1 trillion. This figure clearly reflects the economic strength and attractiveness of the world’s top two exchanges.

International Stock Indices You Need to Know

The United States has about 5,000 different indices, but four prominent ones are closely followed by investors:

Dow Jones Index (DJIA)

Created in 1896 by Charles Dow, founder of The Wall Street Journal, this index represents about 25% of the total value of the US stock market. Its current value is 39,411 (as of 27/3/2024). DJIA is considered one of the most closely watched indices, influenced not only by economic data but also by global geopolitical events.

S&P 500 Index

Established on 04/03/1957 and managed by the joint venture S&P Dow Jones Indices (owned by McGraw Hill Financial), this index includes the 500 largest publicly traded companies. The S&P 500 accounts for 70% of the US stock market value, making it the most comprehensive benchmark for large-cap stocks. Its current value is 5,220 (as of 27/3/2024).

Nasdaq Composite and Nasdaq 100

Nasdaq was founded in 1971 by NASD and is now operated by Nasdaq Stock Market, Inc. This index includes thousands of companies from various industries, not just the big names. Nasdaq 100, launched in 1985, selects the 100 largest listed companies on the exchange, with a current value of 18,269 (as of 27/3/2024). Focused on technology, telecommunications, biotech, and media sectors, Nasdaq 100 is regarded as a reliable non-financial index.

Impressive Performance Over the Past 5 Years

The international stock markets, especially US indices, have shown remarkable growth:

• S&P 500: up 85.78%
• Dow Jones Index (DJI): up 54.13%
• Nasdaq 100 (NDX): up 147.43%

Individual stocks have recorded even more impressive figures:

• Microsoft (MSFT): up 256.33%
• Apple (AAPL): up 261.33%
• NVIDIA (NVDA): up 1908.58%

Recovery Trajectory of Indices from 2022 to 2024

Dow Jones: From Decline to Recovery

The Dow Jones index experienced a tough period, dropping from a peak of 36,799 (on 1/4/2022) to 28,690 (on 30/9/2022), a loss of 28.3%. The main reasons include economic recession, energy crisis, and monetary tightening policies. However, in the first three months of 2024, after the Fed signaled potential rate cuts, the index increased by 5.59%.

S&P 500 and Nasdaq Composite: Prosperous Journey

Similar to Dow Jones, the S&P 500 was affected by the global economic situation from 2022-2023. However, after October 2023, the downward trend subsided. The index rose nearly 10% in the first three months of 2024, reaffirming its position as one of the most followed indices.

Nasdaq Composite moved similarly, quickly recovering from its lowest levels. In March 2024, it increased by 2.28%, indicating gradual stabilization in the tech market.

Nasdaq 100: Strong Breakthrough

NAS100 also faced common impacts from 2022-2023 due to energy crises, Russia-Ukraine conflict, global inflation, and monetary tightening. Despite these challenges, from October 2023, this index began a strong recovery. It reached 16,000 in November, surpassed 18,000 in March 2024, and as of 01/04/2024, has increased by 24.17% over the past 6 months.

Notable Stocks in 2024

Below is a list of stocks with outstanding performance in 2024:

These stocks show remarkable positive performance, especially from the beginning of the year to now. Despite the large fluctuations in 2022-2023 caused by global economic events, these stocks still recorded impressive growth compared to other major tech names that declined sharply.

Trading Hours and How to Participate in the Market

The US stock market operates from Monday to Friday, with standard trading hours from 20:35 to 03:00 (summer) or 21:35 to 04:00 (winter). Besides regular trading hours, there are pre-market sessions (7:00 PM to 8:30 PM) and after-hours trading (3:00 AM to 5:30 AM).

For investors wanting to participate in the international stock market, especially those in Vietnam, the most common method is through derivative trading tools like Contracts for Difference (CFD). Via CFDs, you can profit from price differences without directly owning the securities. This method allows leveraging both upward and downward market trends.

Factors That Will Decide the Future of the Market

Monetary Policy of the Federal Reserve

According to Goldman Sachs forecasts, the Fed will implement 3 rate cuts in 2024 and 4 in 2025, plus one in 2026. This will bring long-term interest rates to a stable level of 3.25-3.5%. These signals are creating positive momentum for continued growth in US stocks.

Geopolitical Conflicts

The Russia-Ukraine war and Israel-Hamas conflict will continue to be significant factors. These events could impact the global economy, prompting investors to seek safe-haven assets like gold and Bitcoin, potentially slowing stock and equity growth. Top investor David Bahnsen suggests that the stock market could decline 7-10% if Middle East conflicts escalate.

Conclusion

The global stock market, especially the US stock market, is entering a promising phase with many opportunities for investors. Understanding key indices, historical performance, and standout stocks will help you make more informed investment decisions. Despite existing risks from geopolitical and economic factors, the demand to participate in the global stock market is increasingly facilitated by modern trading tools.