By It’s that wonderful time of year when investors can take a break from their trading apps, relax with a glass of eggnog, and enjoy the presents left under the tree by Santa Claus. Christmas has finally arrived, bringing with it a moment of celebration for investors who have had a prosperous year.
A Year of Success
Looking back on the year, investors have many reasons to cheer. The Dow Jones Industrial Average has seen an impressive 13% increase, while the S&P 500 has risen by 24% and the Nasdaq Composite has jumped an astounding 43%. This successful year has set the stage for a joyful holiday season.
Market Hours on December 25, 2023
It’s important for investors to note that both the New York Stock Exchange and the Nasdaq Stock Market will be closed on Christmas Day. As Christmas is a federal holiday, it is observed by these markets, along with banks, the bond market, and the over-the-counter market. However, regular trading hours will resume on Tuesday.
International Markets
Christmas is a holiday widely recognized across the globe. As a result, several foreign exchanges will also be closed in observance. The London Stock Exchange, Euronext Paris, Stock Exchange of Hong Kong, Toronto Stock Exchange, and Milan Stock Exchange are among those that will be closed. However, investors should take note that the Shanghai Stock Exchange and Tokyo Stock Exchange will remain open for trading on Christmas Day.
As we embrace the holiday spirit, it’s important for investors to enjoy this special time with family and friends. Wishing all investors a very merry Christmas and happy holidays!
How Does the Market Usually Perform After Christmas?
According to Dow Jones Market Data, the S&P 500 has gained an average of 0.8% during the last five trading days of the year since 1950. In fact, the S&P 500 has risen 74% of the time in the five days following Christmas in that time frame.
Historical Performance
The worst five-day stretch after Christmas was in 1987, when the S&P 500 dropped 2.4%. On the other hand, the best performance was in 1991 when the S&P 500 increased by an impressive 5.1%.
Santa Claus Rally
Investors hoping for a so-called Santa Claus rally might be disappointed this year. The Santa Claus rally refers to a bump in trading during the last five days of the year and the first two days of the new one.
In recent years, both the Dow and the S&P 500 have experienced gains during this period for seven consecutive years. However, the Nasdaq Composite has declined during the Santa Claus rally period for the past two years.
Recent Performance
The Santa Claus rally window began on Friday. On that day, the Dow slipped 0.1%, while both the S&P 500 and the Nasdaq Composite recorded slight gains of 0.2%.
For more information, please refer to Dow Jones Market Data.
Comments