Equity Bulls Push S&P 500 to Verge of Record – US Market Wrap

The holiday-shortened week began with gains in stocks, as a broad advance extended the bullish momentum on Wall Street. Oil and gold rallied while the dollar weakened.

Equities erased their December losses, with the S&P 500 on track for an eighth consecutive monthly gain, its longest winning streak since 2018. Nearly 400 stocks in the index advanced on Monday as the benchmark moved closer to a record. Tesla and Nvidia led gains among megacap shares, while a gauge of smaller companies rose 1.2%.

It has been a strong year for equities, and the key question is whether investors will carry that optimism into 2026. Positioning in stocks continues to rise, with fund managers holding record-low levels of cash. Expectations for further gains are outweighing concerns over elevated valuations. Investors are also closely monitoring the Federal Reserve outlook, with markets pricing in two rate cuts next year.

Fed’s Miran said the central bank risks triggering a recession unless it continues lowering interest rates in 2026.

The S&P 500 climbed to around 6,880. The yield on the 10-year Treasury rose two basis points to 4.16%, while the dollar snapped a three-day advance.

Oil prices climbed, while gold and silver surged to record highs amid ongoing geopolitical tensions.