The Santa Claus rally period spans the last five trading days of the year and the first two of the next. Over the first three days of the period so far, the S&P 500 has added 0.7%, while the Nasdaq Composite has advanced 0.9%. The S&P 500 has added 25% this year and is 0.3% shy of a fresh all-time high. The tendency for stocks to post a Santa rally is chalked up to a variety of factors. Analysts mostly watch the Santa rally period for fun, but some say it sets the tone for the new year.

Source: Wall Street Journal December 28, 2023 14:25 UTC