According to Stock Traders, stocks tend to perform well from the last five trading days of December to the first two days of January, a phenomenon known as the Santa Claus Rally, which has driven the S&P up an average of 1.3% since 1969. That’s what it means. Almanac, Reuters reported.
Despite Friday’s decline, the S&P is up 1.77% and the Nasdaq is up 1.8% over the past five sessions, Reuters reported.
According to Reuters, the S&P 500 Index rose about 25% in 2024 through Dec. 27, while the tech-heavy Nasdaq Composite Index, which exceeded 20,000 for the first time in December, rose more than 31%.
Wall Street is expected to release more economic updates next week, including a report on pending home sales and home prices. Reports on U.S. construction spending and a snapshot of manufacturing activity are also expected. On Friday, the S&P 500 index fell 66.75 points, or 1.1%, to 5,970.84. Roughly 90% of the stocks in the benchmark index lost value, but it managed to maintain a modest 0.7% gain for the week. The Dow Jones Industrial Average fell 333.59 points, or 0.8%, to 42,992.21. The Nasdaq Composite Index, which has a high proportion of high-tech stocks, fell 298.33 points (1.5%) to 19,722.03.
FAQ
Q1.What are the three major indices on Wall Street?
A1. The three major indexes on Wall Street are the S&P 500, Dow Jones, and Nasdaq.
Q2. What is Santa Claus Rally?
A2. Stock prices tend to be strong from the last five business days of December to the first two days of January, a phenomenon known as the Santa Claus Rally.
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