The ASX technology sector was by far and away the best-performing share market sector of 2024.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) gained an astounding 49.54% over the year.

The ASX financials sector, which includes bank shares, insurers, investment managers, and financial services providers, came in second best with the S&P/ASX 200 Financials Index (ASX: XFJ) rising 28.22%.

The two sectors vastly outperformed the benchmark S&P/ASX 200 Index (ASX: XJO), which lifted 7.49% (this excludes dividend returns). The ASX 200 closed at 8,159.1 points yesterday.

The worst-performing ASX sector was energy, with the S&P/ASX 200 Energy Index (ASX: XEJ) falling 18.83%.

The second-worst sector was materials, which includes miners, building materials suppliers, chemical manufacturers, and packaging companies. The S&P/ASX 200 Materials Index (ASX: XMJ) fell 17.27%.

Let's recap what happened with the best and worst-performing ASX sectors and shares of 2024.

ASX tech shares the best of the bunch in 2024

There are 11 market sectors making up the ASX 200. We list their gains and losses in the table below.

The technology sector ripped higher due to rising global demand for artificial intelligence. Companies around the world are investing in AI to increase their productivity.

ASX tech shares also followed in the footsteps of US tech shares.

The Nasdaq Composite Index (NASDAQ: .IXIC) enjoyed another strong year largely due to the Magnificent Seven stocks continuing to inspire investment.

Among the tech sector's three biggest stocks by market capitalisation, WiseTech Global Ltd (ASX: WTC) shares rose by 60.6% in 2024, Xero Ltd (ASX: XRO) lifted 50.1%, and TechnologyOne Ltd (ASX: TNE) rose 103.7%.

Some ASX tech shares outperformed the US Magnificent Seven in terms of best price growth in 2024.

The financials sector was driven higher by stable Australian interest rates and a remarkable rally in ASX bank shares.

This rally was partly driven by superannuation funds and investment managers diverting monies from mining amid a weakening Chinese economy and volatile commodity prices into banking.

Among the financial sector's three biggest shares, Commonwealth Bank of Australia (ASX: WTC) rose 37.1%, National Australia Bank Ltd (ASX: NAB) lifted 20.8%, and Westpac Banking Corp (ASX: WBC) rose 41.1%.

ASX energy shares the bad apples of 2024

The energy sector struggled in 2024 amid investor uncertainty and fluctuating commodity prices.

Ongoing geopolitical tensions in the Middle East and Russia/Ukraine also weighed down the sector.

Among the energy sector's biggest trio, Woodside Energy Group Ltd (ASX: WDS) dropped 20.8% in 2024, Santos Ltd (ASX: STO) fell 12.1%, and Yancoal Australia Ltd (ASX: YAL) lifted 31.3%.

Weakening commodity prices and investor uncertainty also negatively affected the materials sector.

China's economic slowdown is worrying investors, and this concern had a significant impact on ASX iron ore shares, in particular, last year.

The share price of the materials sector's biggest stock, BHP Group Ltd (ASX: BHP), fell by 21.54%. The Fortescue Ltd (ASX: FMG) share price declined by 37.1% and Rio Tinto Ltd (ASX: RIO) shares lost 13.4%.

ASX 200 market sector snapshot

Here's how the 11 market sectors performed over 2024, according to CommSec data.