Core Viewpoint - The "Santa Claus rally" is a significant market phenomenon that occurs during the last five trading days of the year and the first two of the new year, historically leading to positive market performance [1][2]. Group 1: Historical Performance - Since 1928, the Standard & Poor's 500 has averaged a 1.6% gain during the last five trading days of the year, with a slightly lower average gain of 1.3% since 1950 [3]. - Historical data indicates that even in years when the S&P 500 had a negative performance earlier in December, the Santa Claus rally occurred more than three-quarters of the time, specifically in 20 out of 26 years [5]. Group 2: Theories Behind the Rally - Theories explaining the Santa Claus rally include tax-loss selling followed by reinvestment, seasonal optimism, increased holiday shopping, and reduced institutional trading due to holiday schedules [4]. - A decline in stock prices during the last five trading days is interpreted as investor caution regarding the upcoming year [4]. Group 3: Current Market Sentiment - There is ongoing debate on Wall Street regarding the likelihood of a Santa Claus rally in 2025, with some analysts expressing skepticism about its occurrence [6].