The S&P 500 has a new record and a fourth straight day of gains. Has Santa's rally begun?

U.S. stocks rose in price at the end of trading on Tuesday, December 23, showing the fourth consecutive day of growth, and the S&P 500 reached a new record. The market leaders were securities of companies related to artificial intelligence, CNBC writes.

- The S&P 500 broad market index rose 0.45% to 6,909.8 points on Dec. 23, marking a new all-time high. The S&P 500 is targeting an eighth straight month of gains - which could be the longest streak since 2018, Bloomberg emphasizes.

- The Nasdaq Composite Technology Index jumped 0.57%, thanks to gains in shares of Nvidia and Broadcom, which rose about 2%. The sector continues to recover from the recent correction.

- The blue-chip index Dow Jones Industrial Average added 0.16%.

- Gold also hit a record amid a falling dollar, which is on track for its worst year since 2017, Bloomberg notes. The price of the precious metal rose 1.2% to 4,519.4 an ounce for the day.

The growth of stocks could not stop the strong macro statistics published on Tuesday, CNBC points out. As reported by the US Department of Commerce, the economy grew at its strongest pace in two years in the third quarter, up 4.3%. This was more than 1 p.p. more than the Dow Jones consensus. - more than 1 p.p. more than the Dow Jones consensus. At the beginning of trading, this data caused concern: investors took it as a signal to a possible postponement of the Fed's rate cuts. However, later the market recovered. According to the CME FedWatch tool, which tracks traders' expectations regarding the regulator's decisions, they are still laying down two Fed rate cuts next year.

Trading volume on Tuesday was below the average for the last three months amid the shortened working week of stock exchanges in the run-up to the Christmas holidays, Bloomberg calculated. The "Santa Claus rally" expected by investors may begin as early as Wednesday, December 24 - it usually lasts for the last five trading sessions in December and the first two in January. Since 1950, the S&P 500 index during this period rose by an average of 1.3%, and positive dynamics was recorded in 78% of cases, said Adam Turnquist of LPL Financial. At the same time, he emphasized that seasonal trends reflect only historical patterns, but do not provide guarantees.

Analysts at Bespoke Investment Group reminded us that the trading session after Christmas is one of the most consistently positive of the year. Over the past 39 years, when the market opened on December 26, the S&P 500 index has declined only six times.

- "The expectation of two rate cuts [in 2026] probably won't be revised for now," said Apollon Wealth Management investment director Eric Sterner. - The Ma's odds of a rate cut earlier this year have gotten smaller, but we will soon find out who Trump will nominate as the new Fed chief. It will almost certainly be someone with softer rhetoric than [current Fed Chairman Jerome Powell]."

- The U.S. economy continues to move upward, but consumer sentiment may differ - indicated by consumer confidence levels, notes eToro's Bret Kenwell. "If consumers remain resilient through the holiday season and into the fourth quarter, that would be a good signal for U.S. GDP," he told Bloomberg. - Corporate profits continue to surprise. Bulls are hopeful that this trend will continue."

- "There will still be many bumps in the road, but there is good reason to believe that the trends that are currently supporting the economy - investment in AI and strong demand from affluent consumers - will continue into 2026, and that the market can continue to grow in the wake of rising corporate profits," said Daniel Skelly, head of the Market Research & Strategy team at Morgan Stanley.

This article was AI-translated and verified by a human editor