Wall Street Education

What is the Santa Claus Rally in the Stock Exchange?

US stocks often rise in the run-up to the holidays, a trend known as the "Santa Claus Rally". The period covers seven trading days: from December 25 to January 2.

The S&P 500 has gained an average of 1.3% on those seven days since 1950 most of the time.

There are many explanations for the Santa Rally, including tax considerations, a general feeling of optimism and seasonal happiness on Wall Street, and holiday bonus investing.

2 years ago | [YT] | 1