Recently, many people have been paying close attention to the background behind why the stock market is so strong right now. There are multiple reasons why stock prices are rising, but geopolitical factors and changes in the macroeconomic environment are significantly influencing the trend.

The 3% increase in the S&P 500 was driven by rising expectations of a Federal Reserve rate cut in December. Additionally, the positive growth outlook following Alphabet's earnings report also supported market sentiment. However, understanding the reasons behind rising stock prices requires also considering negative factors. These include OPEC+ monitoring the global oil market, as well as the economic slowdown and high-interest-rate struggles in certain countries, which are also impacting the market.

The movement of gold prices is also intriguing. In November, gold stabilized above $4,000 per ounce and has the potential to return to the all-time high of $4,398 per ounce. If geopolitical uncertainties intensify, there could be further upward movement. However, a strong dollar could act as a headwind to overall commodity prices.

U.S. and European stocks attempted to regain a short-term upward trend toward the end of November. If the S&P 500 breaks above the resistance level of 6,750 points and the Euro Stoxx 50 surpasses 5,640 points, it could open the way for new highs. The Supreme Court decision on Trump’s trade tariffs is also a key market focus. An immediate reversal could create economic uncertainty, and the dollar index might psychologically target the important 100-point level. Demand for the tech sector also plays a crucial role in shaping market sentiment in the U.S.

If you’re tracking the reasons behind rising stock prices, timing of trades is also critical. As market volatility can change rapidly, choosing the right time frame can make or break your success. The 4-hour chart helps capture intraday dynamics, while the daily chart provides a broader view of the trend. It’s wise to avoid trading during holidays, major news releases, and nighttime hours when liquidity tends to decrease.

The closing time on the New York Stock Exchange is 4:00 PM local time. Pre-market trading runs from 4:00 AM to 9:30 AM, and after-hours trading from 4:00 PM to 8:00 PM. The U.S. market will close early on July 3 and November 28, 2026, with December 24 being the next holiday.

U.S. stock market holidays include New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving, and Christmas. If a holiday falls on a Saturday, the market closes on the preceding Friday; if on a Sunday, it closes on the following Monday. Naturally, the NYSE is closed on New Year’s Day as well.

Innovations, ESG factors, and structural changes in the labor market are also noteworthy reasons for stock price increases. Capital inflows into quantum computing and biotechnology are accelerating, and automation is boosting productivity, positively impacting corporate margins. According to CB Insights, there are now 498 private AI companies valued at over $1 billion. While stricter regulations pose new challenges for major tech firms, small-cap stocks are attracting attention as potential bullish candidates for 2026, as their earnings are more protected from government tax hikes.

Understanding the global market context is essential for navigating the stock market. Complex factors such as geopolitics, macroeconomics, and sector-specific movements shape the reasons behind rising stock prices.