Santa got left out in the cold this year. His Rally never materialized. Was that an omen for 2026 or is it meaningless?
Monday
S&P 500 0.35% | NASDAQ 0.50%
The trading volume is traditionally light between Christmas and New Years. Monday was no different as trading volumes were down tremendously from the norm. The light trading volume resulted in weak market performance, led by Tech. Gains were found in the energy sector as oil prices rose.
Tuesday
S&P 500 0.14% | NASDAQ 0.24%
Energy stocks continued to lead, however, stocks were little changed on the day. This marks the third trading day since Christmas and it is looking like Santa might not be coming this year…
Wednesday
S&P 500 0.74% | NASDAQ 0.76%
Markets finished the final day of the year in the red even though the year ended strongly in the green. Weekly initial jobless claims impressed, coming in at 199k rather than the 220K expected.
Thursday
S&P 500 0.00% | NASDAQ 0.00%
Happy New Year!
Friday
S&P 500 0.19% | NASDAQ 0.03%
The first trading day of the year brought, well, not much… Markets were little changed, but something to note would be a leadership in value stocks, such as energy and financials. Welcome to the new year. It is too early to say this is how 2026 will be, but January will be watched for potential themes.
Conclusion
S&P 500 1.03% | NASDAQ 1.52%
The ‘Santa Claus Rally’ is the week from Christmas to New Years and first two days of the new year. Markets tend to perform well on the lower volume. It often will even extend into the weeks leading up to Christmas. The Santa Claus Rally never arrived this year. It could have been a profit pulling at year end on what was a stellar year for Tech stocks. However, historically, it can be a harbinger of a pretty lackluster January and potentially a soft 2026.
~ Your Future… Our Services… Together~
Your interest in our articles helps us reach more people. To show your appreciation for this post, please “like” the article on one of the links below:
FOR MORE INFORMATION:
If you would like to receive this weekly article and other timely information follow us, here.
Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services. Broad diversification across several asset classes with a long-term holding strategy is the best strategy in any market environment.
Any and all third-party posts or responses to this blog do not reflect the views of the firm and have not been reviewed by the firm for completeness or accuracy.