Wall Street is optimistic that stocks can continue their streak after another banner year in 2024. But, analysts warn, geopolitical and domestic policy risks could make it a bumpy ride.

While they stumbled crossing the finish line on Dec. 31, U.S. stocks ripped higher for most of the past 12 months and carried the S&P 500 to record highs several dozen times as the economy kept growing and the Federal Reserve began cutting interest rates.

U.S. exceptionalism in stock market performance is driven by multiple factors. Read why elevated valuations and fiscal vulnerabilities pose significant risks to U.S. equities.