Wall Street eyes S&P 500 at 7,000 to close strong 2025
U.S. stocks are heading into the final trading days of 2025 with strong momentum, as the S&P 500 hovers near the historic 7,000 level and investors look to cap off one of Wall Street’s most resilient years.
Major U.S. indexes are on track to finish December higher after shaking off earlier volatility linked to weakness in technology stocks and concerns over heavy artificial intelligence spending. The S&P 500 closed at a record high this week, sitting just about 1% below 7,000, a milestone it has never reached before, News.Az reports, citing Reuters.
If current gains hold, the benchmark index will post its eighth consecutive monthly advance, marking its longest winning streak since 2017–2018.
“Momentum is certainly on the side of the bulls,” said Paul Nolte, senior wealth adviser at Murphy & Sylvest Wealth Management. “Barring any unexpected shock, the path of least resistance for stocks is higher.”
The upcoming week is shortened by the holiday, but attention will center on the Federal Reserve’s latest meeting minutes, due Tuesday. Investors are eager for clarity on the future path of interest rates after the Fed cut rates by a total of 75 basis points across its final three meetings of 2025, bringing its benchmark rate to 3.50%–3.75%.
The Fed’s December decision was closely divided, and policymakers offered widely varying projections for 2026, adding uncertainty to market expectations.
“Handicapping how many rate cuts we’ll get next year is a big focus,” said Michael Reynolds, vice president of investment strategy at Glenmede. “The minutes could be illuminating.”
Markets are also watching for any signal from President Donald Trump, who is expected to nominate a new Fed chair ahead of Jerome Powell’s term ending in May — a move that could sway investor sentiment.
With just days left in the year, the S&P 500 is up nearly 18% in 2025, while the Nasdaq Composite has gained about 22%. However, leadership within the market is shifting.
The technology sector — long the engine of the bull market — has fallen more than 3% since early November, even after a recent rebound. Meanwhile, financials, healthcare, transport stocks and small-cap shares have recorded solid gains, pointing to a broader-based rally.
According to strategists, the trend suggests investors are rotating into areas with more reasonable valuations as confidence in the economy improves.
“More investors are buying into the idea that the economy is on solid footing,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial. “It’s weathered a lot of potential roadblocks this year.”
A decisive move above 7,000 would not only mark a historic milestone for the S&P 500, but also reinforce confidence that U.S. equities can carry their momentum into 2026 — even as questions loom over rates, leadership at the Fed, and market leadership beyond Big Tech.
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