Amid light holiday trading, the S&P 500 continued its gains and reached a record high. Nvidia shares are rising, and analysts are optimistic about its licensing agreement with AI startup Groq. Market optimism is still supported by seasonal patterns. Although optimistic expectations about the AI boom and the Fed's interest rate outlook are being scrutinized more closely, stock market bulls are watching the so-called “Santa Claus' market,” that is, the upward trend from the last few transactions at the end of the year to the beginning of January of the following year, and sees it as a potential catalyst for further increases in the stock market. Craig Johnson, chief market technical analyst at Piper Sandler, said that the market is expected to remain structured in the last four trading days but tend to diverge. The expansion of market breadth combined with slowing inflation supports the judgment that Santa Claus's market will appear before the end of the year.

Amid light holiday trading, the S&P 500 continued its gains and reached a record high. Nvidia shares are rising, and analysts are optimistic about its licensing agreement with AI startup Groq. Market optimism is still supported by seasonal patterns. Although optimistic expectations about the AI boom and the Fed's interest rate outlook are being scrutinized more closely, stock market bulls are watching the so-called “Santa Claus' market,” that is, the upward trend from the last few transactions at the end of the year to the beginning of January of the following year, and sees it as a potential catalyst for further increases in the stock market. Craig Johnson, chief market technical analyst at Piper Sandler, said that the market is expected to remain structured in the last four trading days but tend to diverge. The expansion of market breadth combined with slowing inflation supports the judgment that Santa Claus's market will appear before the end of the year.