The “Santa Rally” has fallen flat so far for the S&P 500 (SPX), with the benchmark index down by nearly 1% since the seasonal event began on December 24.
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New trading tool for QQQ bullsIn addition, the S&P 500 has closed lower over the past three trading days and is on track for a four-day losing streak to end the year. Since 1950, this rare occurrence has only been recorded twice, in 1966 and 2024, according to SubuTrade.
S&P 500 Tends to Rebound after Four Consecutive Losses
On the bright side, the index tends to perform well in the short term following four consecutive lower year-end closes. The S&P 500 posted a positive one-week return on both occasions with an average gain of 1.85%. The index was also higher one month later with an average return of 4.87%.
Meanwhile, there’s still time for Santa to make an appearance, as the “Santa Rally” will last until January 5, 2026.
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