All articles tagged with #santaclausrally
The recent inflation report has not hindered the anticipated year-end 'Santa Claus' rally in the stock market, providing relief to investors. While transportation and shelter costs were significant contributors to inflation, a slight decrease in shelter costs is seen as positive. The Federal Reserve is expected to cut interest rates by 25 basis points next week, but concerns about potential inflation resurgence in 2025 remain.
Dan Niles, founder of Niles Investment Management, commented on Nvidia's recent performance, noting that the company's forecast of demand surpassing supply for several quarters has set lower expectations for investors. He suggests that while Nvidia is benefiting from the current AI-driven market, there may be a reality check ahead. Despite this, the market is in a favorable seasonal period, often referred to as the 'Santa Claus rally,' where investors are optimistic about stock performance.
The traditional "Santa Claus rally" did not occur at the end of 2023, with the S&P 500 falling 0.9% during the period typically associated with market gains. This break in the seven-year positive streak is viewed by some analysts as a potential precursor to a bear market or future declines. The Nasdaq Composite also experienced a drop, while the Dow Jones Industrial Average saw a negligible increase. Market sentiment was affected by a reassessment of the previous year's rally and the Federal Reserve's monetary policy direction.