US Stock Indices Hit Record Highs, Powered by Technology Giants:
The S&P 500 Index achieved its 54th all-time high this year,
driven by strong performance from major technology companies.
Meanwhile, Federal Reserve Governor Christopher Waller said he leans toward
voting for an interest rate cut in December, bolstering positive market sentiment.

Key Economic Data

Strong December Performance

Risks on the Horizon

Potential Volatility

Conclusion

Technology Stocks Propel US Indices to Record Highs

The significant rise in major technology stocks drove US indices to achieve new record highs.
This comes as Wall Street traders prepare for a series of economic data releases and Federal Reserve statements,
which are expected to play a critical role in shaping the future path of interest rates.

Market and Index Performance

The S&P 500 rose by 0.2%, while the Nasdaq 100 jumped by 1.1%.
In contrast, the Dow Jones Industrial Average fell by 0.3%.
Tesla led gains in the technology sector, while Apple shares hit new record highs.
Treasury yields for 10-year bonds increased by two basis points to reach 4.19%.
Additionally, the dollar broke a three-day losing streak following comments from President-elect Donald Trump,
who warned BRICS nations against attempts to replace the dollar.

Room for Further Growth

Despite the most substantial rally the S&P 500 has experienced since the dot-com boom,
the index still has room for further growth, according to Andrew Tyler of JPMorgan Chase.
Tyler noted that the most common options trades suggest the index could reach 6,200 and 6,300 this month,
with the index closing Monday slightly below 6,050.

Key Economic Data This Week

The jobs report due Friday is the week’s highlight.
The November employment report is expected to show a rebound
after hurricanes and strikes affected job growth in the previous month.
Additionally, Federal Reserve Chair Jerome Powell will participate in a discussion on Wednesday,
during which investors will watch for his assessment of the labor market
and inflation and hints about the December interest rate decision.
Tom Essaye of “The Sevens Report” described this week as “the last critical week for economic data in 2024.
” He added, “If the data is positive, investors could anticipate
a soft economic landing and an interest rate cut in December,”
which may support significant gains before the year’s end.

Strong December Performance with Caution of a Pullback

According to Sam Stovall of CFRA, December boasts the
second-highest average monthly return for the S&P 500 since World War II,
with a high advance rate and low standard deviation of returns, especially during election years.
However, Craig Johnson of Piper Sandler cautioned that the
stock market’s constructive trends rely on continued expansion in small-cap stocks, which could lift all sectors.

Risks on the Horizon for 2025

Despite the positive momentum, concerns loom that 2025 could present more significant challenges.
Ed Clissold of Ned Davis Research noted that markets recording 50 or more
all-time highs in a single year tend to decline the following year, with an average loss of 6.2%.

Potential Volatility and Investment Strategies

Matt Maley of Miller Tabak remarked, “Despite concerns about markets reaching peak levels,
most investors don’t see this as a real threat until next year.”
However, he warned that such complacency could lead to sudden pullbacks,
though clear signs of a downturn have yet to emerge.

Conclusion

While current forecasts remain optimistic,
the new year will require balanced investment strategies and realistic risk assessments,
especially given the possibility of market corrections during the first half of 2025.

US Stock Indices Hit Record Highs, Powered by Technology Giants

Contents

Technology Stocks Propel US Indices to Record Highs

Market and Index Performance

Room for Further Growth

Key Economic Data This Week

Strong December Performance with Caution of a Pullback

Risks on the Horizon for 2025

Potential Volatility and Investment Strategies

Conclusion

US Stock Indices Hit Record Highs, Powered by Technology Giants

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