Major U. S. stock indexes were near record highs on Friday during quiet post-Christmas trading, boosted by expectations that the Federal Reserve will cut interest rates. While markets were closed in Australia, Hong Kong, and most of Europe due to public holidays, other markets showed positive trends, with Asian stocks reaching multi-week highs.
The S&P 500 rose by 0.07%, the Dow Jones increased by 0.03%, and the Nasdaq also gained 0.03%, all on track for significant yearly growth. Large technology companies primarily fueled the rise in the S&P 500, while investors are also shifting their focus to other sectors like financials and materials, leading to broad gains. Data indicating a resilient U. S. economy, along with the possibility of new leadership at the Federal Reserve looking to cut rates, has supported the markets.
Precious metals saw significant price increases, with silver reaching a record high as geopolitical tensions made it more appealing as a safe investment. The dollar’s weakening boosted the price of gold for international buyers. Analysts expect this rally to continue, predicting further gains in 2026, driven by strong demand and ongoing uncertainties in the market.
Investors are looking towards 2026 to see when the Federal Reserve may reduce rates again, with expectations of at least two cuts but no action before June. The dollar has faced pressure, leading to increases in other currencies, while the Japanese yen has weakened despite a recent interest rate hike by the Bank of Japan.
With information from Reuters
