Stock Bull Run Takes a Break at End of Banner Year: Markets Wrap.

Wall Street ended the year with stocks taking a break after a strong rally that brought the market close to all-time highs. The S&P 500 had a surge of over $8 trillion this year, defying concerns such as Federal Reserve uncertainty and recession fears. The index is on track for its longest weekly bull run since 2004. The US 10-year yield is expected to end the year where it began, after experiencing significant swings throughout the year. Key inflation data has fueled gains for equities and bonds, and the rally has been driven by the Federal Reserve's dovish pivot. Former Treasury Secretary Lawrence Summers warns that investors may be underestimating inflation risk. RBC Global Asset Management cautions that equity markets are vulnerable to a pullback if the US economy enters a mild recession. The lack of anxiety is evident in the low volatility levels, which could indicate investor complacency. [Extracted from the article]