Santa Rally Ignites: Dow, S&P 500 Hit Record Highs Amid Strong Economy & AI Surge

• US stock markets closed higher, with Dow Jones Industrials and S&P 500 Index reaching record closing highs in a holiday-shortened session.
• The rally is fueled by a recovery in AI-related stocks, strong US economic data, and expectations of Federal Reserve rate cuts next year.
• New applications for unemployment benefits fell more than expected, indicating a robust job market.
• Micron Technology surged 3.8% to a record high after a strong forecast, while bank stocks also supported market gains.
• The 'Santa Claus Rally' period, where S&P 500 typically gains, began on Wednesday and extends until January 5.

Why It Matters: US markets are experiencing a 'Santa Rally' with record highs, driven by AI recovery, strong economy, and rate cut hopes.