{"id":201779,"date":"2024-12-25T03:16:05","date_gmt":"2024-12-25T03:16:05","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/12\/25\/wall-street-rises-as-santa-claus-rally-begins-times-of-india\/"},"modified":"2024-12-25T03:16:06","modified_gmt":"2024-12-25T03:16:06","slug":"wall-street-rises-as-santa-claus-rally-begins-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/12\/25\/wall-street-rises-as-santa-claus-rally-begins-times-of-india\/","title":{"rendered":"Wall Street rises as \u2018Santa Claus Rally\u2019 begins – Times of India"},"content":{"rendered":"
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Equity investors are also hoping for what\u2019s known as the \u201cSanta Claus Rally,\u201d in which stocks rise during the final five trading sessions of a year.<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n

A rally in the group that has led Wall Street\u2019s gains in 2024 lifted stocks in a relatively quiet session ahead of Christmas.
Following a strong day for big tech, the shares continued to power ahead on Tuesday. Tesla Inc. led megacaps higher. Broadcom Inc. and Advanced Micro Devices Inc. climbed as President Joe Biden\u2019s team launched a probe into Chinese-made chips. In a shortened pre-holiday session, the S&P 500
\u201cThe action of the past few weeks shows that the big-cap tech names are still the key leadership group in today\u2019s stock market,\u201d said Matt Maley at Miller Tabak. \u201cThese big-tech names are highly overweighted in the portfolios of a huge number of institutional investors. Any buying they do over the next week is likely to be concentrated in these names.\u201d
Equity investors are also hoping for what\u2019s known as the \u201cSanta Claus Rally,\u201d in which stocks rise during the final five trading sessions of a year and the first two of the new one. This time around that window started Tuesday.
\u201cSanta Claus rally could still be alive, with strong seasonality into the end of the year,\u201d said London Stockton at Ned Davis Research.
Since 1950, the S&P 500 has generated average and median returns of 1.3% during this period, widely outpacing the market\u2019s average seven-day gain of 0.3%, according to Adam Turnquist at LPL Financial.
\u201cWhen investors are on the \u2018nice\u2019 list, and Santa delivers a \u2018positive\u2019 Santa Claus Rally return, the S&P 500 has generated an average January and forward annual return of 1.4% and 10.4%, respectively,\u201d he said.
The S&P 500 rose 1.1%. The Nasdaq 100 added 1.4%. The Dow Jones Industrial Average gained 0.9%.
The yield on 10-year Treasuries was little changed at 4.59%. The Bloomberg Dollar Spot Index barely budged.
While a positive \u201cSanta Claus Rally\u201d has preceded a 10.4% average annual gain for the S&P 500 since World War II, Sam Stovall at CFRA says a more accurate indicator in his view is the \u201cJanuary Barometer.\u201d
That\u2019s a market hypothesis positing that January\u2019s performance predicts the year\u2019s performance. The term was coined by Yale Hirsch, creator of the Stock Trader\u2019s Almanac, in 1972.
Since 1945, when the year started with a gain in January, the S&P 500 rose an average of 18.3% in price during the entire year, Stovall at CFRA said. If the first month saw a decline in price, however, the average full-year return was negative 1.9%.
With the market up over 25% this year and no corrections of more than 10%, the S&P 500 has managed to stay solidly above its 200-day moving average for the entirety of 2024, noted Bespoke Investment Group strategists.
\u201cBarring a significant market selloff in the last few trading days of the year, this will be the 12th year since 1952 (when we went to the current 5-day trading week at the NYSE) that the S&P has traded above its 200-DMA all year,\u201d they said.
The average next-year change following these years has been a gain of just 4.6% compared to the average gain of 9.2% for all years, Bespoke noted.
Last week, Bank of America Corp. clients were large net buyers of US equities, according to strategist Jill Carey Hall. They bought American shares for the seventh consecutive week.
Similar to the prior five weeks, clients bought both single stocks and exchange-traded funds, with bigger inflows into the former, she noted. Flows were primarily in large caps.
Investors should have a more-balanced approach in US stocks over the first quarter, according to Citigroup Inc. strategists led by Scott Chronert, who see a greater opportunity in defensive sectors.
They raised health care to overweight, noting valuations are now lower and fundamentals seem close to inflection point. Meantime, they are selective on growth stocks, looking for stronger fundamental trend versus valuation and potential margin improvement.
Citi\u2019s strategists are overweight in media, internet and semiconductors, while raising software to market weight.
Corporate highlights:<\/span><\/p>\n

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  • American Airlines Group Inc said a technical vendor glitch was the cause of a brief groundstop on all US flights on Christmas Eve, one of the busiest days of the holiday travel season.<\/li>\n
  • Nippon Steel Corp\u2019s proposed $12.3 billion acquisition of US Steel Corp. moved a step closer to being blocked after a US national security panel deadlocked on its review and left the final decision with President Biden, who has repeatedly indicated his opposition to the deal.<\/li>\n
  • Salesforce Inc says it\u2019s taking multiple large customers from former partner Veeva Systems Inc. in a mounting rivalry to sell software to the pharmaceutical industry.<\/li>\n
  • A Starbucks Corp barista strike has shut down about 170 cafes, according to the coffee chain, disrupting service at locations nationwide during the final days of the crucial holiday shopping season.<\/li>\n
  • Arcadium Lithium Plc, a chemicals company, said it obtained all shareholder approvals for a proposed acquisition by Rio Tinto Plc.<\/li>\n<\/ul>\n<\/div>\n

    Stocks<\/span><\/p>\n

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    • The S&P 500 rose 1.1%<\/li>\n
    • The Nasdaq 100 rose 1.4%<\/li>\n
    • The Dow Jones Industrial Average rose 0.9%<\/li>\n
    • The MSCI World Index rose 0.9%<\/li>\n
    • Bloomberg Magnificent 7 Total Return Index rose 2.1%<\/li>\n
    • The Russell 2000 Index rose 1%<\/li>\n<\/ul>\n<\/div>\n<\/div>\n