Tuesday kicks off a historically merry period for investors, a stretch known familiarly as the Santa Claus rally for the positive stock market returns typically enjoyed during the holiday season, potentially bringing further gains to a largely cheery 2024 for equities.

The article examines the performance of U.S. stock markets, focusing on the Santa Claus rally phenomenon. It discusses the impact of 10-year Treasury yields, megacap stock valuations, and a notable lawsuit against the Federal Reserve over its annual stress tests.

The so-called Santa Claus rally could get off to a late start this year. But better late than never. A team of strategists at Ned Davis Research pointed out that stocks have struggled ahead of the start of the “Santa Claus rally” period, which begins on Tuesday.

U.S. equity futures moved lower in early Thursday trading, while Treasury bond yields remained elevated in the wake of the Federal Reserve's cautious rate stance, as investors hit pause on the early Santa Claus rally.

Learn all about the Santa Claus Rally, a seasonal stock market trend with historical significance. Discover why it happens and some tips.

Some of the biggest winners were mega-cap tech stocks, with Tesla up by 6% while Broadcom, Netflix, and Amazon each gained about 2%.

Stocks have seen a stellar 2024, but the S&P 500 is in danger of a rare December loss. It’s all riding on the so-called Santa Claus rally.

Stocks could come under a little pressure but are on course for solid annual gains as the year’s end approaches.