Stocks Soar to All-Time Highs as "Santa Rally" Anticipation Builds

• Wall Street saw stocks reach all-time highs in a quiet pre-Christmas session, fueled by strong jobs data and "Santa Claus Rally" expectations.
• Optimism is high for Federal Reserve rate cuts in 2026, with two quarter-point reductions anticipated, likely in the first half of the year.
• The S&P 500 topped 6,930, marking a fifth straight day of gains, while the VIX volatility gauge hit its lowest point this year.
• Analysts like UBS Global Wealth Management and Principal Asset Management recommend positioning for further equity advances, citing resilient economy and cooling inflation.
• Despite some tech valuation concerns, improving market breadth and easing inflation support continued gains, though a "four-peat" of double-digit S&P 500 gains is considered unlikely.

Why It Matters: Market highs driven by Santa rally hopes, Fed cut bets, and strong jobs, but future caution advised.