S&P 500 continues to hit new highs, "Santa Claus rally" expected to support US stocks.

In light holiday trading, the S&P 500 index continued its rise towards historic highs. Nvidia's stock price rose as analysts were optimistic about its licensing agreement with artificial intelligence startup Groq. The market's optimistic sentiment continues to be supported by seasonal patterns. Although optimistic expectations for the artificial intelligence boom and the Federal Reserve's interest rate outlook are under closer scrutiny, investors are focusing on the so-called "Santa Claus rally", a seasonal uptrend from the last few trading days at the end of the year to early January, as a potential catalyst for further market gains. Piper Sandler's Chief Market Technician, Craig Johnson, stated that the market is expected to maintain a structural rally in the last four trading days but is becoming more selective. The expansion of market breadth combined with slowing inflation supports the expectation of a Santa Claus rally before the end of the year.