The final trading week of 2024 transitions into 2025 with a holiday closure on Wednesday, but traders can expect normal trading hours otherwise. The S&P 500 has seen impressive gains in 2024 and investors will be watching for momentum continuation.
This week’s key economic releases include the Initial Jobless Claims report, Manufacturing PMI, and Crude Oil Inventories. Traders should exercise caution due to irregular trading schedules and lower volumes, which can lead to increased volatility.
Here are five key events to watch:
1. **Initial Jobless Claims**: Thursday at 8:30 am will bring the first significant economic indicator of 2025, with potential implications for market sentiment.
2. **Manufacturing PMI**: The S&P Global Manufacturing PMI report on Thursday at 9:45 am could set the tone for industrial stocks and provide insight into factory activity.
3. **Crude Oil Inventories**: Thursday’s EIA Crude Oil Inventories report may impact energy sector stocks and broader market sentiment, with potential surprises affecting volatility.
4. **Santa Claus Rally and January Effect**: The traditional Santa Claus Rally period concludes this week, bringing historically positive returns. The January Effect also benefits smaller-cap stocks as tax-loss harvesting subsides.
5. **Holiday Trading Schedule**: Markets will be closed on Wednesday for New Year’s Day, with lower trading volumes expected on other days. Traders should exercise caution due to thin trading conditions and potential price movements.
Best of luck this week.
Source: https://www.barchart.com/story/news/30231316/holiday-trading-jobs-data-and-other-can-t-miss-items-this-week