Dow, S&P 500 Hit Record Highs as Dovish Fed Hopes Trump AI Worries

• Dow Jones and S&P 500 closed at record highs, fueled by expectations of a dovish Federal Reserve in 2026.
• The market experienced a rotation from major tech stocks into old economy and defensive sectors.
• Oracle Corp. shares fell 11% due to disappointing results, contrasting with Broadcom's positive AI chip sales outlook.
• Interactive Brokers forecasts a Santa Claus rally for the S&P 500 to 7,000 this year, but a 2026 target of 6,500 citing future headwinds.
• Hopes for Fed rate cuts led to a weaker US Dollar and significant surges in Gold and Silver prices.

Why It Matters: Dovish Fed expectations push markets to records, signaling economic shifts.