Markets are hoping for another rally to finish the year. Will December come up empty or will seasonal optimism keep spirits high going into 2025?
Monday
S&P 500 0.73%
NASDAQ 0.98%
Markets looked to recover from an interest rate policy sell-off from last week. Consumer confidence showed signs of cracking in December after strong data in the last two months. New Homes sales increased as a welcome sign for real estate transactions.
Tuesday
S&P 500 1.10%
NASDAQ 1.35%
In just two trading days, markets seemingly made up for last week’s losses just in time for the Holiday. Markets closed early for the day, ultimately limiting activity but gave hope to the “Santa Claus Rally”.uesday recovered all the losses from Monday’s trading and the NASDAQ came out stronger as major tech stocks continued to gain on future product outlook. Little economic data was released on the day but we should expect more concentrated price movement as the 3rd quarter earnings begin to roll in.
Wednesday
S&P 500 0.00%
NASDAQ 0.00%
Merry Christmas! – Markets Closed
Thursday
S&P 500 -0.04%
NASDAQ -0.05%
Trading was subdued on the day with little change across the broad indexes. Initial jobless claims fell slightly; however, continuing jobless claims indicated jobs were harder to come by for those already on unemployment.
Friday
S&P 500 -1.11%
NASDAQ -1.49%
Losses accelerated into the close of a holiday-shortened trading week but managed positive gains for the week. With only 3 trading days left in 2024, December appears likely to end in the red after a hot November.
Conclusion
S&P 500 0.67%
NASDAQ 0.76%
The last 5 trading days of December are often looked at closely for investors who enjoy seasonal trends. The Santa Claus rally, as has been coined, is seen roughly 3 out of every 4 years but doesn’t necessarily precede significant market pullbacks in years it doesn’t occur. The question going into any New Year is whether a short-period rally will sustain itself or is it more psychological than anything? The New Year tends to bring new resolutions and perhaps markets are looking to set one of their own which could include more realistic growth outlook going into 2025. The S&P500 is poised to close 20% or higher for the 2nd straight year. A new administration, adjusted monetary policy, and a New Year may adjust market sentiment moving forward.
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