The “Santa Rally,” which began on December 24 and ends on January 5, is off to a good start with the S&P 500 (SPX) closing with a 0.32% gain. The historically bullish stretch runs from the last five trading days of the year to the first two trading days of January.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge-fund level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Since 1950, the seven-day event has been positive 79% of the time with an average return of 1.3%, according to Investopedia. However, the rally failed to materialize in both 2023 and 2024, leaving investors skeptical of the pattern.
Santa Has Never Skipped Three Rallies in a Row
The Santa Rally has never failed to show up for three consecutive years, according to data going back to 1950 compiled by Carson Investment Research. Additionally, the Santa Rally has only seen negative returns in back-to-back years on two occasions, with the other years being 2014 and 2015.
Meanwhile, investors should look forward to December 26, as it has historically been the second strongest day of the year for the S&P 500 with an average return of 0.49%. October 28 takes home first place with an average gain of 0.50%, with November 24 in third place at 0.47%.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.