Wall Street reaches new peaks on AI rebound

The S&P 500 and Dow Jones closed at record highs on Wednesday during a light-volume Christmas Eve session.

The S&P 500 hit its first intraday record in over a month as investors rotated back into AI stocks, anticipating Federal Reserve rate cuts in 2025.

All three major indexes posted their fifth consecutive gain, with the S&P 500 on track for an 18% annual return.

The rally followed a rebound in AI-related stocks after last week’s selloff, which stemmed from concerns over elevated valuations and profit-eroding capital expenditures.

Markets are pricing in approximately 50 basis points of Fed rate cuts next year, though a January cut appears unlikely.

Recent data confirms economic resilience. US and European index futures traded mixed during Asian hours. Asian equities rose modestly today in thin trading, led by Japanese and South Korean shares, with several regional markets closed for holidays.

Precious metals extended their record rally on Friday, driven by geopolitical tensions and strong demand. Spot silver surged to a record high above $75.15 per ounce, marking its fifth consecutive session of gains.

Nifty declined by 35 points on Wednesday, closing at 26,142.

The short-term trend of the Nifty remains positive, with a bullish higher-top, higher-bottom structure on the daily chart.

On the downside, the level of 26,000 is expected to act as a near-term support. On the upside, the 26240 level is likely to act as immediate resistance, followed by 26,330.

Indian markets are poised to open moderately lower in the absence of any strong cues.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: HDFC Securities Prime Research