Wall Street outlook for year-end: US stocks eye strong close amid 2025's record highs; focus shifts beyond big tech

The US Wall Street is hoping to mark a strong finish for the year, amid recent highs. The S&P 500 ended at a record high on Wednesday, ahead of the Christmas holiday , being just around 1 per cent short of the 7,000 mark for the first time.The S&P 500 is on track for its eighth straight month of gains, a trend not seen since 2017-2018. The benchmark index has grown nearly 18 per cent this year, while the tech-heavy Nasdaq is up 22 per cent.Investors remain optimistic, with the US stock market showing signs of continued growth despite earlier concerns over technology sector weakness, according to a Reuters report."Momentum is certainly on the side of the bulls," said Paul Nolte, senior wealth adviser at Murphy & Sylvest Wealth Management, as quoted by Reuters. "Barring any exogenous event, the path of least resistance for stocks, I think, is higher," he added.The Federal Reserve's recent actions are keeping investors on edge. The Fed cut rates by 75 basis points over its last three meetings of 2025, bringing them to 3.50 per cent-3.75 per cent. Markets are eagerly awaiting the minutes from the December meeting, due next Tuesday.Additionally, an interesting shift is happening in the market. While tech stocks have struggled lately, dropping over 3 per cent since November, other sectors are doing well. Key sectors to mark significant gains include- Finance, transport, healthcare, and small-cap stocks.Anthony Saglimbene from Ameriprise Financial sees this as a positive sign, saying, "There are more investors that are buying in to the narrative that the economy is on pretty solid footing right now," he explained. "And it has weathered a lot of potential roadblocks this year that might not be such roadblocks next year," he added.Investors are also watching for President Donald Trump's nomination for the next Fed chair, as Jerome Powell's term ends in May 2026. This decision could impact market movements in the coming week.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)