S&P500 and Nasdaq Index: US Stocks Rally Toward New Highs in Fresh Forecast Analysis

• S&P 500 is trading at 6,937.38, following two previous 370-380 point rallies in 13 sessions each, with technical analysis projecting a potential move to 7,090-7,102 by January 13
• Materials sector leads gains while consumer discretionary lags; notable movers include Freeport-McMoRan (+3%) and Nvidia (+1.7%) on the upside, with Moderna and cruise lines down 2-4%
• Nasdaq recovery from lower-bottom pattern suggests tech rotation may be reversing, with projected target of 24,492-24,518 by January 2-7

U.S. stock markets edged higher on December 26, 2025, with major indices approaching record highs. The S&P 500 traded at 6937.38 (+0.08%), nearing the significant 7000 milestone—just six months after crossing 6000. The Nasdaq Composite gained 0.11% to 23639.045, while the Dow Jones slipped 0.07% to 48699.43.

Technical analysis reveals the S&P 500 is following similar rally patterns from earlier swings, with projections targeting 7089.99 to 7101.97 by January 13. The index shows consistent higher-tops and higher-bottoms, supported by its 50-day moving average at 6790.29. Previous swings measured 369.56 and 381.54 points over 13-session periods.

The Nasdaq is attempting to overcome a lower-bottom, lower-top pattern, reflecting November's tech stock rotation when traders shifted from AI-related holdings to more conservative positions. Technical projections suggest a potential rally to 24492.64-24518.92 between January 2-7, which would shift the trend upward.

Market sentiment remains resilient despite concerns about an AI bubble, tariffs, government shutdown risks, and persistent inflation. Sector performance was mixed, with materials leading gains while consumer discretionary lagged. Only 3 of 11 sectors posted gains.

Notable individual movers included Freeport-McMoRan (+3.015%), Target (+1.989%), and Nvidia (+1.718%) among gainers. Moderna and Texas Pacific Land each fell nearly 4%, while cruise lines Norwegian and Royal Caribbean dropped over 2.25%.

The analysis suggests continued bullish momentum heading into year-end, though profit-taking and position-squaring could occur before the weekend. Both indices remain above their 50-day moving averages, indicating sustained upward trends.

News ID

3451743

Source

FXEmpire

Analyzed

5 hours ago