Market focuses on Federal Reserve policies and sector rotation, US stocks surge to a historic high

On December 28, the US stock market is currently at a historical high, with the S&P 500 index just about 1% away from breaking through 7,000 points for the first time, and it is expected to achieve its eighth consecutive month of gains. This would be the longest monthly winning streak since 2017-2018. “Momentum is clearly on the bullish side,” said Paul Nolt, Senior Wealth Advisor at Murphy & Sylvest Wealth Management. “Unless an external shock occurs, I believe the path of least resistance for the stock market remains upward.” The Federal Reserve meeting minutes will become a market focus next week, with investors closely watching when the Fed might further cut interest rates. Investors are also waiting for Trump to nominate a new Federal Reserve Chair to succeed Powell, and any hint from Trump could influence market trends around next week. The S&P 500 has risen nearly 18% this year, while the Nasdaq has increased by 22%. However, the technology sector, which has been a main driver of this bull market, has recently struggled, while other areas of the market have performed well. Anthony Saglimbene, Chief Market Strategist at Ameriprise Financial, said these market movements indicate that funds are rotating into sectors with more moderate valuations. (Jin10)