Volume was light, as is expected through the rest of 2010. Investors stayed with sectors that have led a sharp December rally, including financials, energy and materials stocks. The S&P 500 is up 5.7 percent for the month and 11.8 percent for the year.
"We have seen this year-end rally refuse to give up any ground," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.
The combination of improving economic data, additional stimulus from the Federal Reserve and the extension of tax cuts was keeping equities in demand, Hellwig said.