What is the S&P 500's current status after Tuesday's trading?

The S&P 500 reached a new record close on Tuesday, marking a significant achievement for the market.

What is the 'Santa Claus rally' investors are hoping for?

The Santa Claus rally refers to a historically bullish stock market trend occurring between the last trading days of the year and the first few days of the new year.

How did the U.S. GDP report impact market expectations?

The third-quarter GDP came in strong at 4.3%, surpassing estimates but initially lowering expectations for near-term interest rate cuts.

Home / Business and Economy / S&P 500 Hits New High as Rally Fever Grows

S&P 500 Hits New High as Rally Fever Grows

24 Dec

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Summary

S&P 500 achieved a record close, fueled by tech giants.
Third-quarter GDP surpassed estimates at 4.3%.
Investors anticipate a year-end 'Santa Claus rally'.

S&P 500 Hits New High as Rally Fever Grows

Major U.S. stock indexes concluded Tuesday's trading session with gains, the S&P 500 notably reaching a fresh record close. This upward momentum was significantly driven by leading technology companies such as Alphabet, Nvidia, Broadcom, and Amazon, signaling continued strength in the sector.

Earlier in the day, the Commerce Department reported that the U.S. gross domestic product for the third quarter stood at 4.3%, exceeding market expectations and suggesting robust economic activity. While this initially tempered expectations for interest rate cuts, futures markets still indicate potential reductions by the end of 2026.

Investors are now keenly anticipating the traditional 'Santa Claus rally,' a period of positive market performance between late December and early January. Historical data indicates this rally has a strong track record of success, with current market conditions and technical strategist observations pointing towards a favorable outlook for continued gains and potentially surpassing the 7,000-point mark for the S&P 500.