The “Santa Claus rally” – a traditional holiday market phenomenon where the US stock market experiences gains from Christmas to January 2. Despite its occasional failure, research suggests it doesn’t necessarily impact overall performance in the coming year. In fact, the market has risen more often than not during this period over the past century.
Markets will likely continue to perform well even if the rally falters on its first day. The data paints a promising picture for investors heading into 2025.
Source: https://www.marketwatch.com/story/why-2025-may-not-suffer-from-a-failed-santa-claus-rally-9f07cc2f