Every December, traders ask whether we will see a “Santa Claus Rally” in the stock market In this article, I define exactly a Santa Claus Rally, then test almost a century of S&P 500 Index performance to check for both historic and recent outperformance. December outperformance has disappeared over the past 20 years, but bullish momentum still suggests a rising stock market in December 2025, even if Santa doesn’t show up.
Forex traders should be aware of the Western Christmas and New Year holiday season because it impacts market opening and, arguably, the market itself.