Should You Really Buy Stocks Before the New Year? Here's What History Says.

Group 1 - The S&P 500 is on track for its third consecutive annual gain, driven by excitement around AI stocks and optimism regarding a lower interest rate environment [1][7] - AI stocks, particularly Nvidia and Microsoft, have significantly contributed to the S&P 500's gains, with their revenue soaring due to AI products and services [4] - The Federal Reserve's decision to lower interest rates, with an 87% probability of further cuts, is expected to favor earnings growth and enhance stock performance [5] Group 2 - Despite facing challenges such as President Trump's import tariff plan and concerns about an AI bubble, the S&P 500 has rebounded and reached multiple record highs [2][6] - Initial fears regarding tariffs were alleviated by negotiations and companies' management strategies, while strong demand for AI products has renewed investor confidence [6]