The real reason the stock market keeps climbing

Market Overview - The S&P 500 has reached another record high, with the index above 6,600, which is considered reasonable given historical market behavior [1] - Current valuations are somewhat extended, but the economic backdrop remains favorable, with stable inflation expectations and anticipated support from the Federal Reserve [2] Sector Performance - The recent market rally has been significantly driven by major technology stocks, but it is not limited to this sector [2] - A broader market participation is observed, with over half of the stocks above their 200-day moving average, indicating strength across various sectors [3] - Financials, particularly large banks, and industrials are also contributing to the market's upward movement, suggesting a positive economic environment [3]