The S&P 500 avoided a third straight weekly loss, rising 0.7% and bringing its year-to-date gains to 25% with two trading days remaining in 2024.
“Investor sentiment is high entering 2025 as several of the 2024 positive trends that remain in place were bolstered by November election results, which ignited pro-growth policy expectations,” D.A. Davidson said in a Friday note to clients. “This sets up conditions for equity prices to move higher if the U.S. economy sustains growth above 2% and corporate earnings grow above 10%.”
The effect of a so-called “Santa Calus” rally in the U.S. stock market could reverse early next year amid the prospect of new trade policies or tariffs under the incoming Trump administration, Saxo Bank said in a report published last week. The Santa rally refers to the tendency for stock markets to move higher during the last week of December and the first two trading days of January.
U.S. markets were closed Wednesday for Christmas. Retail sales increased more than expected during the holiday season and came in above last year’s growth pace, according to preliminary data from a Mastercard (MA) report.
Among sectors, energy and health care were the best performers for the week, rising more than 1% each. Only consumer staples and materials posted losses.
This week’s economic calendar features the Institute for Supply Management and S&P Global’s U.S. manufacturing sector data for December. Reports on pending home sales for November and house price data for October are also due. Markets will be closed Wednesday for New Year’s Day.
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Bautis Financial LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
Bautis Financial Advisor Commentary: A Year-End Client Message