Indexes close mixed as traders hold out hope for a Santa Claus rally

New York: So, the stock indexes wrapped up their first trading day after Christmas with a bit of a mixed bag. The Dow Jones managed to gain about 29 points, which is a tiny bump of 0.1%. But the S&P 500 and Nasdaq didn’t fare as well, both slipping just a bit.

This mixed performance comes right in the middle of what’s known as the Santa Claus rally, which usually happens during the last five trading days of the year and the first two of January. Historically, this period is known for some solid gains, with the S&P 500 typically seeing an average rise of about 1.3%.

This year kicked off the rally with a bang on Christmas Eve, where the Dow jumped nearly 400 points, marking its best Christmas Eve performance since 1974. Traders are really hoping this rally will help finish off the year strong and set the stage for another year of good gains.

LPL Financial’s Adam Turnquist mentioned that when investors are on the “nice” list, a positive Santa Claus rally usually leads to a nice January and a solid annual return. But if stocks dip during this time, the outlook isn’t as rosy.

On the jobs front, things are looking a bit shaky. The latest data shows that continuing claims for unemployment benefits have surged to 1.91 million, the highest it’s been in over three years. Initial jobless claims were at 219,000 last week, which is actually below what experts were expecting.

So, that’s the scoop on the markets right now. Let’s see how things unfold as we head into the new year!