US Stocks Continue Rally Led by Tech Sector as S&P 500 Nears Record Highs

US markets started the shortened holiday trading week on a strong note, with the S&P 500 extending its gains, largely fueled by robust performances from leading technology companies like Tesla and Nvidia. According to market data, nearly 400 stocks within the index rose, pushing it close to previous record highs. Small-cap stocks also saw an increase of more than 1%, while oil and gold prices posted notable gains, coinciding with a decline in the US dollar's value. The yield on the 10-year US Treasury note rose by two basis points to 4.17%, according to market reports.

Analyses from major financial institutions indicate that the technology sector has been the primary driver of market gains this year, despite market volatility and concerns over stock valuations. Observers expect this momentum to continue if investor sentiment remains positive into 2026.

Meanwhile, data from investment bank strategies show that fund managers are reducing cash holdings to historic lows, maintaining bets on equities despite higher valuations. Markets are closely watching Federal Reserve policy, with two interest rate cuts priced in for next year.

Precious metals like gold and silver reached new record levels, supported by escalating geopolitical tensions. Looking ahead, analysts note that market indicators remain positive, with expectations that small-cap companies will benefit from cyclical improvements in the US economy, particularly in the first half of 2026.

Despite broad consensus among financial institutions regarding the S&P 500's performance through year-end, some analysts warn that the accumulation of positive news in prices could limit future gains if expectations are not fully realized.

In conclusion, US markets remain strongly supported as the year ends, but continued positive performance will depend on several factors, notably monetary policy direction and major corporate results, with close monitoring of any developments that could impact investor sentiment.