“Santa Claus Rally” starts strong as the S&P 500 crosses the 6,000 mark again

Topline

Tuesday marks the start of a historically merry period for investors, a phase commonly known as the “Santa Claus rally” as stock markets typically produce positive returns during the holiday season, potentially bringing further gains for a largely merry 2024 for stocks.

Important facts

Is the stock market open today?

Yes. The New York Stock Exchange and the Nasdaq will each be open half-day, closing at 1 p.m., while bond markets will close at 2 p.m. and major U.S. financial markets will remain closed until Thursday’s normal trading session.

Important background

Before Santa Claus came down the chimney on Wall Street on Tuesday, it was already a good year for stock investors. The S&P rose more than 25% in 2024, marking its first consecutive annual gain of 20% since 1998, according to FactSet. Much of the gains were driven by continued optimism around generative artificial intelligence and the first interest rate cuts since 2020.

What you should pay attention to

Wall Street strategists widely expect 2025 to be another year of strong returns for investors, with companies like Bank of America, Goldman Sachs and Morgan Stanley each predicting another record rise for the S&P.

tangent

The S&P’s biggest percentage gainer on Tuesday was none other than Palantir, the AI-heavy government contractor that is the index’s best-performing stock in 2024.

Further reading

ForbesThis is how Wall Street expects the S&P 500 to perform in 2025From Derek Saul

ForbesThis AI Company Is the Best-Performing Stock on the S&P 500 of 2024 (Note: It’s Not Nvidia)From Derek Saul