From Dow Jones & Company:



The article discusses the phenomenon known as the Santa Claus rally, which refers to the stock market’s tendency to rise during the last five trading days of the year and the first two trading days of the new year. Historically, the S&P 500 has seen gains during this period. However, some analysts are cautious and believe that the market is already overbought and may experience a “hangover” in January or February. Others suggest that investors should not bet against the seasonal momentum, especially during a bull market with a strong uptrend. The article also discusses a midweek dip in the stock market and potential triggers for the selloff. Overall, the article provides a mixed perspective on the potential for a Santa Claus rally and the current state of the stock market.



Original: ‘Santa Claus’ rally time for stock market? Why investors should dial back their expectations for this seasonal year-end gift.