BlockBeats News, December 23, the US stock market kicked off the traditional "Santa Claus Rally", with major stock indexes generally closing higher. Both gold and silver hit historic highs, with platinum also nearing a record high. The cryptocurrency market, however, surged before pulling back. The S&P 500 index closed higher on Monday, erasing all of December's losses and is poised to achieve an eighth consecutive monthly gain, setting a record for the longest monthly winning streak since 2018.Multiple drivers lie behind this round of gains. Firstly, last Friday's record-breaking "Triple Witching Day" options expiry cleared out a large number of long positions on the S&P 500 in the 6700-6800 range, creating room for stock price appreciation. The VIX volatility index fell below 15, reaching its lowest level since August, with short-term implied volatility continuing to shrink. Analysis suggests that market makers' hedging demand has shifted to follow the trend, driving the market into a "slow climb" rhythm.Secondly, seasonal factors are providing a favorable environment, as historical data shows that the year-end is usually a strong period for stock market performance. In addition, investors are positioning early for optimistic expectations for 2026, including accelerated GDP and corporate profit growth, as well as the potential transformation of AI trading. Federal Reserve Governor Milan stated that there is a recession risk if the Fed does not continue to cut rates next year, further boosting risk appetite with dovish comments. From a technical perspective, the next psychological hurdle for the market is the S&P 500 reaching 7000 points. (Wall Street News)

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