The stock market kicked off the holiday season with a bang, as the S&P 500 surged 1.1% on Tuesday, its strongest Christmas Eve showing in five decades. This marked the best December 24 gain since 1974, according to FactSet data.
A broad-based rally saw over 90% of stocks listed on the S&P gain ground, with Tesla leading the charge with a 7.4% increase. Other notable stocks, including Netflix, Starbucks, and Walmart, also rose at least 2%.
Despite the strong performance, there were no major economic or news catalysts driving the rally. In fact, Tuesday’s trading activity was unusually low, even for a holiday-shortened session. This marked the lowest volume day for the S&P since March 2, 2011.
The Santa Claus Rally phenomenon refers to the period of better-than-average stock market returns over the final five trading days of the year and first two sessions of the following year. Since 1950, the S&P has averaged a gain of 1.3% over this seven-session period, outperforming the typical 0.3% average advance over a seven-day stretch.
In contrast to the recent Dow Jones losing streak, which ended last week after 11 consecutive losses, the market is on a roll once again. This year’s Santa Claus rally will run from Tuesday to next Friday.
Source: https://www.forbes.com/sites/dereksaul/2024/12/24/sp-500-delivers-biggest-christmas-eve-rally-in-50-years