The Santa Claus rally, a seven-session period known for its strong performance during the holiday season, has arrived and departed without making a lasting impact on the markets. Despite a 1.1% gain on Tuesday, the S&P 500 lost momentum, with energy, healthcare, and financials being the top-performing sectors. Consumer staples and materials lagged behind, dropping modestly.
The Nasdaq Composite followed a similar trend, advancing 0.76%, while the Dow Jones Industrial Average gained 0.35%. Analysts point to seasonality trends as a key factor in the market’s performance during this period, but experts caution against making predictions based solely on historical data.
Instead, focus should be placed on fundamental analysis and upcoming economic reports. November new home sales rose 5.9% above expectations, while December manufacturing reports are expected to show continued contraction. The Investing Club will provide updates on these reports and other market developments in the coming days.
Source: https://www.cnbc.com/2024/12/29/dont-get-caught-up-in-seasonal-trends-plus-2-things-were-watching-in-the-week-ahead.html