S&P 500 Surges to Record High Amid Optimistic Market Trends

The S&P 500 reached a record high, fueled by gains across sectors and expectations of further Federal Reserve interest rate cuts. Despite mixed economic data, investor optimism persists with hopes of a 'Santa Claus rally'. Micron Technology and Nike led market gains, reflecting bullish sentiment in a volatile economic landscape.

The S&P 500 soared to a record high as broad sector gains powered the main indexes during a shortened Christmas Eve session. The index touched a peak of 6,921.42 points, exceeding the previous record set in October, as investors expressed confidence in upcoming Federal Reserve interest rate cuts despite mixed economic data.

Recent data shows the U.S. economy grew at its fastest pace in two years during Q3, even after a 43-day federal shutdown delayed reporting. However, decreased consumer confidence in December and stagnant November factory output dampened some outlooks. Conversely, jobless benefit applications surprisingly fell last week, showcasing resilient labor market trends.

Micron Technology and financial stocks contributed significantly to the S&P 500's rise. Hopes for a 'Santa Claus rally', typical in late December, are high as major indexes aim for third consecutive yearly gains. Wall Street remains cautious yet optimistic, especially with ongoing speculation about potential Fed leadership changes under scrutiny.

(With inputs from agencies.)