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U.S. Stock Bulls Believe in Year-End 'Santa Claus Rally'

  • S&P 500 tends to gain 1.3% between year-end holidays
  • So-called Santa rally may emerge as volatile month continues

Wall Street hopes that the stock market will deliver a late gift to investors amid a volatile December.

Monday kicks off an annual event known as the “Santa Claus rally” when the stock market tends to climb into the end of the year. Since 1969, the S&P 500 index has averaged a gain of 1.3% over the seven-day “Santa Claus rally” period, which includes the last five trading sessions of the year and the first two trading days of the new year, according to The Stock Trader’s Almanac.