How Has the Stock Market Performed Around Christmas?
A so-called "Santa Claus rally" happens when stocks rise during the last five trading days of December and the first two of January. This year, Dec. 24 marks the start of such a period -- and investors are hoping for holiday gains.
During the Santa Claus rally window, the S&P 500 has averaged a 0.5% gain each year over the past 20 years, according to Dow Jones Market Data. However, the index fell 0.9% during this span in 2023.
The Dow Jones Industrial Average has also averaged a roughly 0.5% gain each year during the rally period over the last two decades, Dow Jones Market Data show. The index has recorded Santa Claus rallies for the past eight consecutive years. A 2024 rally would mark the Dow's longest winning streak since the 1956-1966 run.
The tech-heavy Nasdaq Composite, meanwhile, has declined during the seven-day trading stretch for the past three years, dipping 2.5% in 2023.
