The S&P 500 continues to hit new highs, with the Santa Claus rally supporting the rise in US stocks.
TL;DR
The S&P 500 is reaching new highs amid a Santa Claus rally, with Nvidia's stock rising due to an AI deal. Despite AI scrutiny and Fed rate concerns, the market focuses on year-end gains, though divergence is expected in the final trading days.
[S&P 500 Continues to Hit Record Highs, Santa Claus Rally Supports US Stocks] According to Mars Finance, citing Jinshi, the S&P 500 continued its upward trend, heading towards a new all-time high in light holiday trading. Nvidia shares rose, with analysts optimistic about its licensing agreement with AI startup Groq. Despite scrutiny of the AI boom and the Fed's interest rate outlook, the market remains focused on the "Santa Claus rally," the rally that occurs in the last few trading days of the year leading up to early January. Piper Sandler's chief market technical analyst, Craig Johnson, stated that the market is expected to maintain a structural trend in the final four trading days, but with a tendency towards divergence.