Santa Rally Fades: Market Clues for January
Update: 2026-01-04
Description
Santa Claus Rally Fizzles: Investors Brace for Market UncertaintyThe traditional Santa Claus rally, which typically boosts the market during the last five trading days of the year and the first two of the new year, has failed for the third consecutive year. The S&P 500 index is poised for a decline, a historical first. Despite this, experts like Yale Hirsch advise against panic, viewing it as an early signal to monitor other trends rather than a sign of the bull markets end.While the rally has been weaker in recent years, winning only about two-thirds of the time since 2013, down from 76% since 1950, investors are now turning their attention to January indicators. If the first five trading days of the year see a rise, the market averages a 14.2% gain for the year with over 83% accuracy. The full January barometer, which matches the years direction nearly 80% of the time since 1928, also provides valuable insights.However, these seasonal patterns should be taken lightly, as fundamentals such as next weeks jobs report, earnings season, and Fed moves will significantly influence the market. Friday saw a slight market bounce, with the S&P up 0.2% and the Dow up 0.7%. Checkout Solipillow.com
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