The S&P 500 saw flat performance in November but started December strong, gaining 0.9% in a week. Top banks predict the index could reach 7,500-8,000 next year. Markets anticipate a 87.4% chance of a Fed rate cut in December. Consumer sentiment rose in early December, but concerns about high prices and labor market persist.

Core PCE price index rose 2.8% year over year in September. Consumer Sentiment Index increased to 53.3 in early December. Inflation expectations for the next year fell to 4.1%. Technology sector benefits from Fed rate cuts, with XLK ETF having strong performance. XLK holds top tech stocks like NVIDIA, Apple, and Microsoft.

Healthcare sector gains momentum, with XLV ETF tracking the Health Care Select Sector Index. XLV has top holdings in Eli Lilly, Johnson & Johnson, and AbbVie. The sector benefits from increasing AI adoption in healthcare. Fed interest rate cut expected to boost XLF ETF, with top holdings in Berkshire Hathaway, JPMorgan Chase, and Visa. Materials sector poised for smooth trading, with XLB ETF tracking the Materials Select Sector Index. Top holdings include Linde PLC, Newmont, and Sherwin-Williams.

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