Wall Street hits new records – Santa’s rally is still possible

In the US, the stock market started the shortened Christmas week strongly, as a broad-based rally continued the positive development of Wall Street.

Oil and gold prices rose, and the dollar weakened. The S&P 500 index, which tracks large companies, is on its way to its eighth consecutive month of gains, which would be the longest winning streak since 2018, according to news agency Bloomberg.

The S&P 500 index strengthened by 0.6 percent. The index is close to the record of 6,901 points reached on December 11. The technology-focused Nasdaq and the industrial company index Dow Jones both advanced 0.5 percent. The Russell 2000 index of small companies strengthened by 1.2 percent.

Among the mega companies, the electric car company Tesla strengthened by 1.6 percent and the artificial intelligence chip company Nvidia 1.5 percent. Iphone manufacturer Apple decreased by one percent.

The technology sector and especially the companies related to artificial intelligence have acted as the driving force of the market this year. Currently showthat their dominance will continue next year as well.

on Wall Street optimism is based on economic growth that boosts business results. Tax cuts and easing of regulations are also expected to support the economy. The Fed is expected to lower its key interest rate twice next year, which would also support the stock market.

Member of the Fed Executive Board Stephen Miran warned in an interview with Bloomberg that the central bank could risk the US economy drifting into recession if it does not continue to cut interest rates next year.

“The trend is our friend and 2026 seems to be off to a strong start. The Santa Claus Rally is still possible, which would mean setting new records during the rest of the year,” says Navellier & Associates investment manager Louis Navellier According to Bloomberg.

The Santa Claus Rally means a rise in the stock market, which starts at the end of December and continues into the early days of January. The phenomenon has been observed for many years, but its recurrence is not guaranteed.

“In general, I’m used to talking about December as a Santa rally, but we’ll see. However, we have a strong autumn behind us, which in a way may now limit Santa’s departure”, evaluate OP: n rescuer Lippo Suominen For Kauppalehti.