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S&P 500 Eyes 7000: Rally Fueled by Dovish Fed Hopes
12 Dec
Summary
- Interactive Brokers forecasts S&P 500 surpassing 7,000 this year.
- Major indices rose Thursday, buoyed by expectations of a dovish Fed.
- Gold and Silver prices surged significantly amid shifting monetary policy views.
The S&P 500 is poised to surpass the 7,000 mark this year, according to Interactive Brokers, driven by anticipated 'Santa Claus rally' momentum. However, the firm projects a dip to 6,500 by the end of 2026, citing potential AI headwinds, a new Federal Reserve Chair, and midterm elections as future market pressures. This outlook follows a session where major Wall Street indices saw gains, with the Dow Jones and S&P 500 closing higher.
The market's upward trend on Thursday was largely supported by expectations of a more dovish Federal Reserve stance in 2026. This sentiment helped to offset concerns surrounding the AI sector, which had initially caused futures to decline. The Dow Jones Industrial Average rose by 650 points, closing above 48,700, while the S&P 500 achieved a record closing high above 6,900.
In contrast, precious metals saw substantial gains, with Gold prices climbing back above $4,300 and Silver heading towards $65, reflecting increased investor interest in safe-haven assets. Initial jobless claims rose unexpectedly, though this did not dampen market optimism. Oracle's stock fell sharply after disappointing results and concerns over its debt, while Broadcom's positive earnings offered some counterweight.
