NEW YORK, Dec 26 (Reuters) – Investors are looking for the U.S. stock market to end 2025 on a high note next week, with equities at record peaks and nearing further bullish milestones to close out another strong year.
Major U.S. indexes were on course to end December higher after stocks shook off turbulence earlier in the month driven by weakness in technology shares over worries tied to spending on artificial intelligence.
The S&P 500 (.SPX)
, opens new tab posted a record close on Wednesday, ahead of the Christmas holiday on Thursday, and was about 1% from reaching the 7,000 level for the first time. The benchmark index was on track for its eighth straight month of gains, which would be its longest monthly winning streak since 2017-2018.
“Momentum is certainly on the side of the bulls,” said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest Wealth Management. “Barring any exogenous event, the path of least resistance for stocks, I think, is higher.”
Minutes from the Federal Reserve’s most recent meeting highlight the market events in the holiday-shortened week ahead, while year-end portfolio adjustments could cause some volatility at a time when light trading volumes can exaggerate asset price moves.
Heading into the new year, investors are highly focused on when the Fed might further cut interest rates. The U.S. central bank, which balances goals of contained inflation and full employment, lowered its benchmark rate by 75 basis points over its last three meetings of 2025 to the current level of 3.50%-3.75%.
REUTERS
