Three Things to Watch
- Despite the holiday-shortened week, investors will see some economic data, including consumer confidence for December, durable goods orders and the delayed third-quarter gross domestic product (GDP) report, which includes the U.S. Federal Reserve’s favored inflation measure, the Core Personal Consumption Expenditures Price Index.
- Consumer confidence is expected to have improved in December after trending lower the last three months, and the GDP report is expected to show the economy grew at more than 3% last quarter.
- And finally, traders will watch to see if we get the Santa Claus rally, a trend that has seen the S&P 500 post gains the last five trading days of the year and the first two days of the new year.
Three Things to Know
- Since 1950, a Santa Claus rally has occurred 79% of the time, and the S&P 500 has gained an average of 1.3%. (Source: Investopedia)
- The STOXX Europe 600 Index (representing large-, mid- and small-cap stocks across 17 European countries) closed at a record high level last week. (Source: Bloomberg)
- Americans are expected to spend an average of $1,007 on gifts in 2025, up from $923 in 2023. More than a quarter of consumers plan to increase their holiday budgets, with some expecting to spend up to $3,076. Millennials are set to boost their holiday spending by 22% compared to the previous year. (Source: Copilot)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.