Stock Market Hits Historic Highs — What’s Driving the Surge?

The U.S. stock market continued its remarkable rally on December 4, 2024, with the S&P 500 notching its 56th record high this year. Driven by outperforming tech stocks, falling 10-year Treasury yields, and robust economic data, the market is riding a wave of optimism heading into the final stretch of the year.

Tech Titans and Treasury Trends Lead the Charge

At the heart of this surge is the tech sector, with the so-called “Magnificent Seven” stocks — led by Nvidia — closing at record highs. Salesforce added fuel to the rally, posting better-than-expected earnings driven by its AI-powered initiatives. The robust performance underscores the sector’s resilience and its central role in the market’s broader gains.

Simultaneously, sliding 10-year Treasury yields have made equities more attractive, prompting inflows into U.S. stocks. According to Goldman Sachs, the past four weeks saw record-breaking inflows of $141.08 billion, highlighting investor confidence in equities despite global uncertainties.

Economic Confidence and Consumer Strength

Federal Reserve Chair Jerome Powell’s optimistic outlook on the economy further buoyed sentiment. His remarks, paired with hopes for constructive…