US stocks mostly advanced on Tuesday, driven by gains in technology shares, as markets prepared for a shortened trading session ahead of the Christmas holiday.
The uptick coincides with the start of the “Santa Claus” rally, a historically positive period for stocks that spans the final five trading days of the year and the first two of the new year. This seasonal trend has often resulted in favorable market performance, with historical data supporting its bullish reputation.
Markets closed early at 1 p.m. on Tuesday and remain shut on Wednesday for Christmas. The bond market will also close for the holiday, wrapping up its trading day at 2 p.m. on Tuesday.
While there is no major economic data on Tuesday, investors are looking ahead to Thursday’s release of initial jobless claims. Economists anticipate that 225,000 new claims will be filed, a slight increase from last week’s figure of 220,000.
The Santa Claus rally has historically been a strong period for stocks. Data going back to 1950 shows the S&P 500 has posted an average return of 1.3% and has finished higher 79% of the time during this window. When extending the analysis to data dating back to 1928, the average gain rises to 1.6%, according to Bank of America.
Related topic:
What Time Do Stock Futures Open On Sunday?
