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S&P 500 Sets Fresh Records as Year Ends, Index Nears 7,000

Next week’s Federal Reserve minutes loom as the key catalyst, with markets sensitive to President Trump’s forthcoming Fed chair nomination.

Overview

  • The S&P 500 logged intraday and closing all-time highs in Wednesday’s abbreviated Christmas Eve session, finishing about 1% below the 7,000 milestone.
  • U.S. stock futures were little changed early Friday as trading resumed after the holiday, with major averages on pace for weekly gains.
  • The S&P 500 is up nearly 18% for 2025 and the Nasdaq Composite is up 22%, with the benchmark on track for an eighth straight monthly gain.
  • The Fed’s policy rate stands at 3.50%–3.75% after 75 basis points of cuts across the last three meetings, and investors expect next week’s minutes to clarify the path for easing.
  • Market leadership has broadened as technology weakened in recent weeks, with financials, transports, healthcare and small caps outperforming, and investors also await a nominee to replace Jerome Powell.