Analysis of S&P 500 New Highs and Global Market Rotation (Dec 2025)

This analysis is based on the December 27, 2025, Seeking Alpha report [1] covering recent market dynamics. The report states the S&P 500 achieved two new highs last week, extending its bull run to a potential seven-month streak and an 87.5% gain since October 2022. However, internal market data [0] reveals a discrepancy in the gain calculation:

• The S&P 500’s October 12, 2022 low (3491.58) to its December 26, 2025 close (6929.95) results in an ~98.5% gain.
• The November 2022 low (3698.15) to the same close yields ~87.4%, which rounds to the reported 87.5%. This suggests the report likely used the November 2022 low as the starting point but incorrectly referenced October 2022, creating an information gap. Additionally, the report notes non-U.S. markets outperformed U.S. equities, with investors rotating from small caps and domestic stocks to large caps and foreign equities.

1. The discrepancy in the baseline date for the S&P 500 gain underscores the importance of precise temporal framing in market performance reporting, as different starting points can yield significantly varied results.
2. The rotation from small caps/domestic to large caps/foreign equities indicates a potential shift in investor risk appetite towards more established asset classes and international markets.

• Risks
  : The S&P 500’s extended bull run and substantial gains raise concerns about potential overvaluation, which could increase short-term volatility [0].
• Opportunities
  : Non-U.S. markets and large caps—recently outperforming domestic small caps—may present growth opportunities as investor capital shifts in their favor [1].

The S&P 500 reached new highs in the week ending December 27, 2025, extending its potential seven-month bull streak. While the report cites an 87.5% gain since October 2022, internal data aligns this gain with the November 2022 low. Non-U.S. markets outperformed U.S. equities, with a rotation from small caps/domestic stocks to large caps/foreign equities.