Wall Street Notches Another Record as AI Rally Powers Ahead

US equities pushed higher again, with the S&P 500 closing at a fresh record as technology stocks extended their year-end rally during a holiday-shortened week. The benchmark index rose 0.46% to finish at 6,909.79, sitting just shy of its intraday peak near 6,920 and marking its fourth consecutive session of gains. 

The Nasdaq Composite outperformed, climbing 0.57% to 23,561.84, helped by renewed strength in artificial intelligence leaders, with Nvidia up about 3% and Broadcom advancing more than 2%. The Dow Jones Industrial Average lagged but still edged higher, adding nearly 80 points, or 0.16%, to settle at 48,442.

Markets absorbed stronger-than-expected economic data without losing momentum. Revised figures from the Commerce Department showed the US economy expanding at a 4.3% annualized rate in the third quarter, well above the 3.2% consensus forecast. The data briefly unsettled early trading as investors reassessed the timing of Federal Reserve easing, but risk appetite quickly returned.

What Does This Mean for Me?

Despite the robust growth backdrop, rate expectations remain relatively accommodative. Futures markets continue to price in roughly two quarter-point cuts by the end of next year, even if the probability of an early move has eased. Investors appear comfortable with the idea that policy will eventually shift lower, particularly as attention turns to potential changes in Fed leadership and a more dovish tilt in 2026.

With the New York Stock Exchange set to close early ahead of Christmas, lighter volumes have not dulled enthusiasm, as US stocks continue to grind higher on a mix of resilient growth, cooling inflation trends, and unrelenting optimism around AI-driven earnings.