Stock market on December 29: S&P 500 and NASDAQ remain near one-year highs

[Ben Graham]

Yesterday, stock indices suffered slight losses. The S&P 500 fell by 0.03%, while the Nasdaq 100 decreased by 0.04%. The Dow Jones Industrial Average lost 0.02%.

As the year comes to a close, global stock markets have maintained growth, bolstered by a record surge driven by advancements in artificial intelligence, which helped the markets recover from the April downturn caused by concerns over Donald Trump's tariff policies. The MSCI All Country World Index, one of the broadest indicators of the stock market, remained stable after a 1.4% increase last week, approaching a new peak. The Asia-Pacific stocks index increased by 0.3% for the seventh consecutive day, driven primarily by gains in technology and mining stocks. Futures on US stock indices declined slightly after the S&P 500 finished trading on Friday close to its peak.

Silver surged sharply, surpassing $80 per ounce for the first time, driven by a speculative surge and ongoing supply-demand imbalances. Gold decreased after reaching a new high, while copper jumped by more than 6%, hitting record levels on the London Metal Exchange. In recent months, precious metals have become one of the most sought-after segments of the financial markets, boosted by increased purchasing volumes from central banks, inflows into exchange-traded funds, and three consecutive rate cuts by the Federal Reserve. Lower borrowing costs favor commodities that do not yield interest, prompting traders to bet on further rate reductions in 2026.

"We are witnessing a generational bubble playing out in silver," stated IG Australia. "Relentless industrial demand from solar panels, EVs, AI data centers and electronics, pushing against depleting inventories, has driven physical premiums to extremes."

Last week, the escalation of the situation in Venezuela, where the US is blocking oil tankers, along with Washington's strikes against ISIS in Nigeria, further increased the appeal of these metals as safe-haven assets.

In other markets, oil prices rose amid prospects of improving demand from China in 2026. However, a fifth consecutive monthly decline is expected in December, marking the longest streak of losses in over two years. Bitcoin increased by approximately 3%, while the dollar remained stable.

Regarding the technical outlook for the S&P 500, the main task for buyers today will be to overcome the nearest resistance level of $6,930. Doing so will signal growth and open the opportunity for a breakout to a new level of $6,949. Additionally, maintaining control above $6,963 will strengthen buyer positions. In the event of a downward movement amid declining risk appetite, buyers must assert themselves around $6,914. A break below this level could quickly push the trading instrument back to $6,896 and pave the way down to $6,883.

The material has been provided by InstaForex Company - www.instaforex.com