Stock Markets Surge on Last-Minute Rally Hopes

Wall Street's major indexes hovered near historic highs post-Christmas as investors anticipated interest rate cuts and corporate earnings boosts. The S&P 500 neared record levels, driven by resilient economic signs and AI stock recovery. Analysts forecast significant profit increases for 2026, propelling tech-driven growth.

Wall Street's major indexes hovered close to their historical highs in light post-Christmas trading on Friday as investors speculated on future interest rate cuts and strong corporate earnings. The S&P 500 hit an intraday record high, nearing the 7,000-point mark, while the Dow Jones Industrial Average was just 0.3% from its December 12 peak.

U.S. stocks have strengthened after recent selloffs, with AI-related companies facing valuation concerns, but are buoyed by signs of economic resilience and the possibility of a more dovish Federal Reserve next year. Analysts predict S&P 500 companies will see a 15.5% profit increase in 2026, a rise from 2025 forecasts.

The year-end rally has broadened beyond tech, with investors turning to cyclical sectors. Traders now watch for a potential "Santa Claus rally" to extend market gains into early January. At 09:39 a.m. ET, all main indexes showed increases, mainly supported by information technology stocks. Nvidia shares rose after new partnerships, while silver and gold miners saw gains on fresh precious metal records.