Santa Claus Rally Absent for Third Consecutive Year, S&P 500 Posts Slight Loss
The Santa Claus rally, a seasonal boost typically observed in the S&P 500 during the final trading days of December and the first two of January, failed to materialize for the third year running. The benchmark index edged down 0.11% over this period, defying historical averages of 1.3% gains since 1950.
Market participants often view the rally's performance as a harbinger of annual returns. While some strategists remain optimistic about equities, the absence of seasonal momentum—coupled with conservative institutional targets for 2026—casts shadows over near-term bullish sentiment.