The S&P 500 index achieved a new high on Friday, marking a period of likely weekly gains as traders resumed activities following the Christmas holiday.
Market Performance Today
The S&P 500 increased by 0.1%, similar to the Nasdaq Composite’s performance. In contrast, the Dow Jones Industrial Average fell by 57 points, equating to a 0.1% decrease.
This week, the S&P 500 rose more than 1%, gearing up for its fourth weekly gain in five weeks, while both the Dow and Nasdaq observed similar increases.
Wall Street Trends and Insights
Wall Street recently concluded a record-setting session, where the S&P 500 achieved new intraday and closing highs on Wednesday. The U.S. markets were not active on Thursday due to the Christmas holiday.
Mark Newton, Fundstrat’s head of technical strategy, noted that 2025 is ending with more positives than negatives. Concerns over an “AI Bubble,” tariffs, and potential government shutdowns haven’t significantly impacted U.S. stocks so far.
Looking Ahead: Seasonal Patterns
Investors are currently experiencing a historically robust seasonal period as they look forward to a potential Santa Claus rally. This rally typically takes place between the last five trading days of the year and the first two of the new year.
According to the Stock Trader’s Almanac, the S&P 500 usually sees an average gain of 1.3% during this timeframe dating back to 1950.
What is the Santa Claus rally?
The Santa Claus rally is a market trend occurring at year’s end.
How have investments performed recently?
Investments have shown positive performance with notable increases.
Why are markets closed on Christmas?
Markets are closed on Christmas to observe the holiday.