In December, Wall Street saw mixed results with the Dow Jones up 0.7%, the S&P 500 down 0.06%, and the Nasdaq falling 1%. The Santa Claus Rally was under pressure, ending the month with a four-day losing streak, a trend historically seen during the final days of the year (per CNBC).

Despite a strong three-year win streak for the S&P 500, the market historically struggles to extend beyond three years, with the last four-year gain seen in 2003-2007. The Fed’s hawkish guidance for 2026, cooling labor market, and ongoing tariff impact create uncertainty. Overvaluation in AI sector and geopolitical uncertainties also loom (as noted in CNBC).

In December, specific corners of the market saw significant gains: Defiance Daily Target 2X Long RKLB ETF rose 115.4%, ProShares Ultra Silver AGQ climbed 44.5%, Tradr 2X Long ASTS Daily ETF increased by 41.9%, and Direxion Daily MU Bull 2X Shares MUU gained 38.9%. However, Coinbase Global Inc COIN shares dropped by 14.1%, impacted by regulatory scrutiny and stablecoin revenue concerns.

Read more at Nasdaq: 5 Leveraged ETF Winners of December