The S&P 500 reached a new all-time closing high on Christmas Eve, marking a resurgence after a nearly 2% drop earlier in December. The index is up about 1% as of this date, continuing a trend where the market historically tends to be bullish during the days surrounding the Christmas holiday.
Today begins the Santa Claus Rally, a seven-day period that includes the last five trading days of the year and the first two trading days of the following year. Historically, the S&P 500 gains an average of 1.3% during this period, with positive returns nearly 80% of the time since 1950. Economic analysts note that a positive Santa Claus Rally typically leads to a gain of over 10% for the S&P 500 in the following year.
In notable market movements, Intel Corporation (INTC) experienced a 2% drop due to Nvidia halting testing on Intel’s advanced chip production process. Conversely, gold producer Agnico Eagle Mines (AEM) reported a significant 130% increase in share value year-to-date, reflecting strong performance in precious metals.
