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

• The S&P 500 is following a pattern similar to previous rallies, with technical analysis suggesting a potential target of 7089.99 to 7101.97 by January 13
• Materials sector leads gains while consumer discretionary lags, with Freeport-McMoRan up 3.015% and Moderna down nearly 4%
• Market sentiment remains supportive despite fears of an 'AI Bubble', increased tariffs, and persistent inflation concerns

S&P 500 and Nasdaq Rally Analysis

U.S. stock markets are approaching record highs, with the S&P 500 nearing the significant 7000 milestone—just six months after crossing 6000. At 16:02 GMT, the Dow Jones was down marginally at 48,699.43 (-0.07%), while the S&P 500 gained to 6,937.38 (+0.08%) and the Nasdaq rose to 23,639.045 (+0.11%).

Technical Patterns

The S&P 500's current rally mirrors two previous swings: October 10-29 (369.56 points in 13 sessions) and November 21-December 11 (381.54 points in 13 sessions). Following this pattern, the index could reach 7,089.99-7,101.97 by January 13. The 50-day moving average at 6,790.29 provides key support.

The Nasdaq is attempting to reverse a lower-bottom, lower-top pattern, with potential targets of 24,492.64-24,518.92 between January 2-7. Its 50-day moving average stands at 23,208.33.

Market Drivers

Investor sentiment remains resilient despite concerns over an AI bubble, tariffs, government shutdown risks, and inflation. The divergence between indices reflects November's rebalancing, where traders rotated from tech-heavy Nasdaq stocks into the more balanced S&P 500.

Sector Performance

Only 3 of 11 sectors showed gains Friday, with materials leading and consumer discretionary lagging. Top gainers included Freeport-McMoRan (+3.015%), Target (+1.989%), and Nvidia (+1.718%). Major losers were Moderna and Texas Pacific Land (both down ~4%), plus Norwegian and Royal Caribbean cruise lines (over -2.25%).

The analysis suggests continued upward momentum toward new highs, though year-end profit-taking remains possible.