Solid Santa Claus Rally Is Signaling Strong Year for Stocks

  • Since 1969, S&P has averaged 1.3% gain over seven-day span
  • S&P 500 climbed 1.4% during the seven-day period this year
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Santa Claus delivered a late gift to investors, with the S&P 500 index posting its biggest gain during the so-called Santa Claus rally in nine years, according to LPL Financial, potentially signaling a healthy 2022 for U.S. stocks.

Tuesday marked the official end to the “Santa Claus rally,” a historically strong period for stocks that includes the last five trading sessions of the year and the first two trading days of the new year. Since 1969, the S&P 500 index has averaged a gain of 1.3% over the seven-day span, according to the Stock Trader’s Almanac.