Stock Markets Near Peaks Amidst Global Market Shifts

Major U.S. stock indexes closed near record highs, buoyed by potential Federal Reserve rate cuts and strong precious metals performance. The markets saw minor dips, driven by tech giants, with investors pivoting to cyclical sectors. Global market dynamics and geopolitical tensions spurred precious metal prices to unprecedented levels.

Major stock indexes in the United States closed near record highs on Friday, with minimal changes from the commencement of a subdued post-Christmas trading session. Expectations of Federal Reserve interest rate cuts and a growing safe haven appeal drove prices of precious metals to historic highs.

While public holidays shut down markets in Australia, Hong Kong, and much of Europe, open bourses aimed to close the year positively, marked by a rise in Asian stocks to multi-week highs. Despite small dips in the benchmark S&P 500, Dow Jones, and Nasdaq away from recent rallies, all three indexes reported significant yearly gains, backed largely by megacap tech company performances.

Analysts cited resilient U.S. economic data and anticipated rate cuts under a potential new central bank chair as positive market influencers. Additionally, reduced pressure on AI stocks due to easing valuation concerns contributed to market buoyancy. Geopolitical tensions, exemplified by U.S. airstrikes and subsequent fluctuations in precious metals, highlight the complex global financial backdrop.

(With inputs from agencies.)