Who Said There's No Christmas Magic? Wall Street Screams “Cha-Ching” After Yesterday’s Santa Rally

Well friends, the Santa Clause Rally came, it saw, and it brought friggin’ receipts. In short, Wall Street got it’s stocking’s stuffed with the fattest Christmas Eve rally in half a century with the S&P 500 notching up 1.1% (clinching it’s best rally holiday rally since 1974), the Nasdaq popping 1.35%, and the Dow rising 0.91% (which isn’t mind-blowing, but a win nonetheless). 

(Source: Giphy) 

Sure, trading volume was lighter than my Pastor cousin’s eggnog recipe, with economic news barely making a squeak, but consider last week's ball-blistering plunge on Dec. 18th (mostly) erased. 

(Source: Forbes) 

Now ICYMI, the Santa Claus Rally isn’t just a cute name—it’s a legit market phenomenon. Historically, the S&P 500 gains an average of 1.3% during the seven-session stretch that starts with the last five trading days of the year and rolls into the first two of January. Compare that to the measly 0.3% average gain over a typical seven-day window, and it’s clear why this period has Wall Street singing “All I Want for Christmas Is Alpha.”

Which is why the real MVP of yesterday's show goes to our favorite overhyped tech stock: Tesla, baby. Elon’s electric empire surged 7.4%, leading the S&P’s charge with it’s best single-day performance in six weeks—proving once again that Elon Musk can still sprinkle a little magic dust on Tesla’s share price—even if those Cybertrucks look like they were designed on Microsoft Paint.

(Source: Reddit) 

In addition, Netflix roared 2%, presumably from everyone watching the entire Christmas section with atrocious Lindsey Lohan love-scripts. Starbucks and Walmart, both dealing with mind-bending issues at the moment, each climbed over 2%, presumably fueled by peppermint lattes and last-minute gift card purchases. Heck, even crypto-adjacent stocks got in on the fun, with MicroStrategy and Riot Platforms jumping between 4.7% and 8.1%.

Now with that said, was Tuesday's rally rational from where the market has been at this month? Not really. Was it festive? Abso-freakin-lutely. With trading volumes hitting their lowest levels since 2011, it’s hard to draw any big conclusions here. But hey, when 90% of the S&P 500’s listings are up, who’s complaining?

(Source: Reuters) 

Looking ahead, this year's rally runs from Dec. 24 to Jan. 3, so if you’re looking for some holiday magic, there’s still time. Just don’t expect it to last forever—Santa’s gotta head back to the North Pole eventually, and the market’s mood swings are simply unpredictable (as I’m sure you know). But for now, let’s all raise a glass this morning to Santa who thankfully brought us some nice portfolio returns for Christmas.

In the meantime, have one heck of a Christmas day with all your friends and family, and hopefully I just gave you a few good soundbites to help make you seem way smarter than your boastful relative who thinks they are the greatest thing since sliced bread LOL. As always, stay safe and stay frosty, friends! Until next time…

P.S. ICYMI, The Pentagon just handed Lockheed Martin an $11 Billion blank check to build its newest F-35 fighter jet fleet—and you bet your a$$ our Congressional Trade Tool spotted some mischievous politicians loading up on Lockheed BEFORE this became official. Meaning, if you’re looking to see where our most fraudulent loyal civil servants are placing their bets to catapult their net worths… Simply click here to try our proprietary Congressional Trade tool with Stocks.News premium today! 

Stocks.News holds positions in Tesla, Netflix, Microsoft, and Starbucks as mentioned in the article.