Stocks are missing the anticipated year-end “Santa Claus” rally, raising concerns about the market’s outlook for 2025. The S&P 500 typically gains an average of 1.3% during this period, but has recently finished lower in the last three trading days. Despite a robust 23% gain this year, investors fear a potential correction in 2025. Historical patterns suggest that the absence of a Santa Claus rally often precedes bear markets. Key January indicators, including the first five trading days and the January Barometer, significantly influence yearly performance, suggesting a lack of positive momentum might hinder growth in the near future.
