BlockBeats news, on December 23, the US stock market opened the traditional 'Santa Claus rally', with major indexes generally rising. Gold and silver both hit historic highs, and platinum approached record levels. The cryptocurrency market surged before retreating. The S&P 500 index closed higher on Monday, erasing all losses from December, with the potential to achieve an eight-month consecutive gain, setting the longest winning streak since 2018.
The momentum behind this rally has multiple driving forces. Firstly, last Friday's record 'Triple Witching Day' options expiration cleared a large number of bullish positions for the S&P 500 in the 6700-6800 range, freeing up space for stock price increases. The VIX volatility index fell below 15, reaching its lowest level since August, with short-term implied volatility continuously compressing. Analysts believe that market makers' hedging demand has shifted to trend-following, pushing the market into a 'slow climb' rhythm.
Secondly, seasonal factors provide a favorable environment, with historical data showing that the end of the year is typically a strong period for the stock market. In addition, investors are positioning themselves in advance for optimistic expectations for 2026, including accelerated GDP and corporate earnings growth, as well as the potential transformation of AI trading. Federal Reserve Governor Milan claims that if the Fed does not continue to cut interest rates next year, there is a risk of recession, and dovish remarks further boost risk appetite. From a technical perspective, the next psychological level for the market is 7000 points for the S&P 500. (Wall Street Journal)