US EditionSanta Claus Rally: Will Wall Street Cheer Or The Grinch Steal Gains?
The Santa Claus rally historically averages a 1.3% gain over seven sessions but faces risks from stock concentration and incoming economic data, experts say.
- This week, investors are watching the Santa Claus rally window, which runs from December 24 through January 5 despite its limited forecasting power for the year ahead.
- Historically, the pattern was identified by Yale Hirsch in 1972, founder of the Stock Trader's Almanac, which links the seven‑session Santa Claus window to about a 1.3% average gain since 1950.
- With the S&P 500 up 16.2% in 2025, traders weigh concentration risks as the top ten stocks heavily contributed, while the Roundhill Magnificent Seven ETF rose 0.8% on Friday.
- Tuesday's consumer confidence print at 10 a.m. ET follows November nonfarm payrolls growth, with last month's U.S. unemployment rate rising and November CPI easing as futures price in at least two Fed cuts next year.
- Holiday trading schedules and lighter volumes can magnify market moves as the U.S. stock market closes early at 1 p.m. ET on Wednesday, with holiday liquidity affected by retail traders and year-end rebalancing.
23 Articles
23 Articles
Will Santa Claus Visit Wall Street In 2025? - SPDR S&P 500 (ARCA:SPY)
Every year investors wait to see if Santa Claus will visit Wall Street as the holiday season approaches. Historically, stocks usually see a festive boost called the Santa Claus rally, but its arrival is never guaranteed. The SPY closed higher Monday. See the chart and the price action here. What is the Santa Claus Rally? The term "Santa Claus Rally" specifically refers to the trend of rising stock prices during the last five trading days of De…
Investors Hope the Santa Rally Is Hitching Up Its Reindeer
There are precious few trading days left in 2025. If history is your guide — and you share the cheery disposition of the season’s round-bellied, red-cheeked representative — you might be in luck. Signs of the year-end, so-called Santa Claus rally may have emerged late last week amid investors’ concern that a rough December would leave them with the proverbial coal in their stock holdings this Christmas. A Data Assist First observed by Stock Trad…
Are Investors About to See a Santa Claus Rally in the Market?
Key PointsThe average year-end rally has been 1.3% since 1950.Bear markets often follow in years without a Santa Claus Rally.This year, the prospects of a year-end rally are mixed.These 10 stocks could mint the next wave of millionaires › The last few days of December can be an exciting time for children who believe in Santa Claus -- and for adults who love the holiday season, too. They can be equally exciting for investors! That's due to the so…
Don’t give up on a Santa Claus rally just yet — even after a rough December start for stocks
Investors may still get the “Santa Claus rally” they had hoped for, even though stocks have struggled to gain momentum so far in December. Article Attribution | Read More at Article Source The post Don’t give up on a Santa Claus rally just yet — even after a rough December start for stocks appeared first on RocketNews.
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