Here's why the S&P 500 might notch new highs in the coming sessions

[Magnifying Glass Over Upward Sloping Chart]
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The benchmark S&P 500 (SP500 [https://seekingalpha.com/symbol/SP500]) is nearing record territory again following a slow but steady advance over the past couple of weeks. Positive developments include the likelihood of another central bank rate cut in December and a newly led Federal Reserve. Following several rounds of interviews, National Economic Director Kevin Hassett is likely to replace [https://seekingalpha.com/news/4526905-hassett-sees-sharp-rise-in-fed-chair-odds-on-kalshi] Jerome Powell next year, tilting the bank toward aggressive interest rate cuts.

_Helping the situation: _The economic data coming to light following the government shutdown blackout hasn't been particularly strong. Rising unemployment [https://seekingalpha.com/news/4524467-nonfarm-payrolls-shock-to-the-upside-in-september-as-unemployment-rate-ticks-up] has been seen amid worrying stats from the private sector [https://seekingalpha.com/news/4528489-november-us-job-cuts-down-53-month-over-month---challenger-report], while manufacturing contracted for the ninth month [https://seekingalpha.com/news/4526952-ism-manufacturing-pmi-surprises-modestly-lower-in-november] and consumer confidence has dipped on concerns [https://seekingalpha.com/article/4847702-consumer-confidence-dropped-sharply-in-november] over inflation, jobs, and the economy. Investors will also get fresh inflation numbers today amid the release of the personal consumption expenditures price index [https://seekingalpha.com/news/4528801-sp500-nasdaq-dow-jones-outlook-stock-market], with the core rate expected to hold steady, even if it's still elevated.

This has bolstered the case for more rate cuts, leading to a broad advance and a rally with legs. The move higher has included most stocks in the S&P 500 (SP500 [https://seekingalpha.com/symbol/SP500]), as well as small-cap stocks, like the fresh record close [https://seekingalpha.com/news/4528663-top-sa-quant-rated-small-cap-stocks-as-russell-2000-notches-a-record-close] by the Russell 2000 Index (RTY [https://seekingalpha.com/symbol/RTY]). Interestingly, tech has largely sat out of the recent rebound amid a sector rotation and concerns over market concentration and valuations.

UP NEXT: "Despite all the recent noise about the economy in the U.S., and geopolitical rumblings heard around the world, I am optimistic regarding the stock market," SA Investing Group Leader Damon Judd writes in his _Market Outlook For 2026 [https://seekingalpha.com/article/4850455-market-outlook-for-2026-the-fourth-industrial-revolution-is-just-getting-started]_. "After all, we are only about 3 years into the latest bull market and tailwinds from the Fourth Industrial Revolution, or 4IR (also called Industry 4.0) are just beginning to propel the S&P 500 (SP500 [https://seekingalpha.com/symbol/SP500]) to new highs in 2025, which I believe will continue for at least another year or two."

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