The S&P 500 reached a record high in December 2024, up 26.8% for the year, yet signs of market exuberance remain limited. Despite optimism about stock prices, consumer and business sentiment is below previous cycle peaks, and M&A activity is muted, indicating cautious investor confidence. Looking ahead, solid economic growth, Fed easing, and advancements in AI are expected to drive further gains, with a target of 6,600 for the index by December 2025.