Visualizing the Top Performing S&P 500 Sectors in 2024
Visualizing the Top Performing S&P 500 Sectors in 2024
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In 2024, nearly all S&P 500 sectors posted gains, in a year defined by AI enthusiasm and a robust U.S. economy.
Overall, 66% of companies ended the year in positive territory as the index achieved its best two-year performance since the late 1990s. While Nvidia ranked among the best performing stocks overall, four of the top 10 stocks last year were in the industrials sector, including GE Vernova and United Airlines.
This graphic shows S&P 500 sector returns in 2024, based on data from S&P Global via TradingView.
Ranked: S&P 500 Sector Performance in 2024
Below, we show how each S&P 500 sector performed over the year, illustrating the dominance of sectors that include Magnificent Seven companies:
| Rank | Sector | 2024 Returns | Weight in S&P 500 Index |
|---|---|---|---|
| 1 | Communication Services | 39.7% | 8.9% |
| 2 | Information Technology | 37.6% | 31.3% |
| 3 | Consumer Discretionary | 29.5% | 10.7% |
| 4 | Financials | 28.9% | 13.9% |
| 5 | Utilities | 20.1% | 2.5% |
| 6 | Industrials | 16.2% | 8.6% |
| 7 | Consumer Staples | 12.2% | 5.7% |
| 8 | Real Estate | 2.0% | 2.2% |
| 9 | Energy | 1.9% | 3.4% |
| 10 | Health Care | 1.1% | 10.6% |
| 11 | Materials | -1.2% | 2.1% |
| S&P 500 | 23.3% | 100.0% |
As the top-performing S&P 500 sector, communication services surged in 2024, driven by heavyweights Meta and Google, which saw 70% and 37% returns, respectively.
Digital advertising revenues, which make up the vast majority of each company’s total revenues, fueled returns thanks to strong consumer spending. In 2024, U.S. ad spending is estimated to reach $379 billion, rising 9% over the year.
Tech giants Nvidia and Apple saw their stock prices soar 171% and 33% in 2024, respectively, driving gains across the information technology sector. Meanwhile, chipmaker Broadcom achieved triple-digit returns driven by demand for custom AI chips across big tech firms.
With one of the lowest price-to-earnings ratios across S&P 500 sectors, financials also outperformed the index. The combination of interest rate cuts and Trump’s re-election boosted bank stocks, as lower interest rates tend to increase lending activity. Looking ahead, lower capital requirements and deregulation could further support the sector.
With 20.1% returns, utilities witnessed a sharp reversal from 2023 amid rising electricity demand from AI hyperscalers. Electricity giant Vistra stood as the top-performing stock in the S&P 500 with a stunning 258% gain thanks to its role in powering AI data centers.
By contrast, materials was the only sector to see negative returns, weighed down by China’s economic slowdown and elevated interest rates.
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To learn more about this topic from a historical perspective, check out this graphic on S&P 500 returns since 1874.
