S&P 500 reaches a record high as ‘Santa Claus rally' kicks off

Market Performance - The S&P 500 reached an intraday record high of 6,921.42 points, surpassing its previous peak from October, driven by broad sector gains and investor optimism regarding potential interest rate cuts from the Federal Reserve next year [1] - The Dow Jones Industrial Average increased by 167.50 points, or 0.35%, to 48,610.95, while the S&P 500 gained 10.24 points, or 0.15%, to 6,920.24, and the Nasdaq Composite saw a slight decline of 2.48 points, or 0.01%, to 23,558.35 [5] Economic Indicators - The U.S. economy experienced its fastest growth in two years during the third quarter, although consumer confidence worsened in December and factory production remained flat in November, which tempered the economic outlook [2] - New applications for U.S. jobless benefits unexpectedly fell last week, indicating steady labor market conditions [2] Sector Highlights - Micron Technology's stock surged by 4% following a strong forecast, contributing to the overall gains in the market [3] - Bank stocks also supported the S&P 500, with financials rising by 0.4% to a new peak [3] - Dynavax Technologies experienced a significant increase of 38.5% after Sanofi announced plans to acquire the company for approximately $2.2 billion [8] Market Trends - The recent gains in U.S. stocks have led to expectations of a "Santa Claus rally," a seasonal trend where the S&P 500 typically gains in the last five trading days of the year and the first two in January [4] - The bull market, which began in October 2022, remains intact, supported by optimism around AI, anticipated rate cuts, and a resilient economy, with all three main indexes poised for their third consecutive yearly gain [6]