Stock Markets Climb to New Heights Amid Precious Metals Boom

U.S. stock indexes reached record highs in quiet trading, buoyed by Federal Reserve rate cut expectations. Precious metals hit all-time peaks, spurred by geopolitical tensions and a declining dollar. Investors focused on potential interest rate cuts in 2026 and awaited a new Fed chair nomination.

The U.S. stock market touched new peaks on Friday, fueled by post-Christmas trading dynamics and anticipation of Federal Reserve interest rate cuts. This optimism also pushed precious metals to record levels amid holiday market closures in Asia and Europe, setting a positive tone for year-end.

The S&P 500, along with the Dow Jones Industrial Average and Nasdaq Composite, advanced slightly in New York's morning trading session, continuing their upward trajectory with tech giants leading the way in 2025. Investors showed interest in cyclical sectors like financials and materials, aiding the indices to mark a third consecutive year of gains.

Global geopolitical tensions, particularly U.S. airstrikes in Nigeria, enhanced the appeal of safe-haven investments. Meanwhile, the dollar's weakening supported gold prices, as the markets await President Trump's choice for a new Fed chair to potentially replace Jerome Powell, whose term concludes in May.

(With inputs from agencies.)