Santa Claus Rally

After promising gains on Christmas Eve, markets opened with a steep sell-off on Monday, fueled by risk-off sentiment and a 20% VIX spike. While concerns loom, the U.S. economy remains robust with projected double-digit earnings growth in 2025. Despite today’s volatility, seasonal tailwinds and historical data still support the possibility of a Santa Claus rally to close out the year.

Why Markets Are Poised for a Bullish Finish

Punk Rock Weekly

Tue December 24, 2024

Why Markets Are Poised for a Bullish Finish

The Santa Claus rally, a phenomenon observed by Yale Hirsch, highlights the market’s tendency to perform well during the last five trading days of December and the first two of January. This year, historical data, robust holiday spending, and a post-Powell volatility collapse point to a strong rally. While consumer sentiment shows mixed signals, economic data and wage growth underpin optimism.

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Why Markets Are Poised for a Bullish Finish

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