SPX has rallied, VIX has fallen, and there’s been general improvement in the U.S. stock market’s internal indicators. Moreover, this is the beginning of another seasonally bullish period — the so-called Santa Claus rally.

The Dow closed slightly higher on Thursday while the Nasdaq and S&P 500 closed lower in the second day of a so-called Santa Claus rally period.

Yes. The New York Stock Exchange and Nasdaq will both operate on half-day schedules, closing at 1 p.m., while bond markets will shut down at 2 p.m., and major U.S. financial markets will stay closed until Thursday’s normal trading session.

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.

Indexes fell in their first trading day after Christmas as traders hope for a so-called Santa Clause rally to propel markets higher into the new year.

According to the latest Labor Department data, weekly jobless claims fell to 219,000 compared with expectations of 223,000. However continuing claims pointed to a cooling labor market, jumping by 46,000 in the week ending Dec. 14 to 1.91 million, the highest level since November 2021.

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%.

The Nasdaq Composite (NASDAQINDEX: ^IXIC) has advanced 34% year to date, and history says that momentum may carry into 2025. Since its inception in 1971, the Nasdaq has returned at least 20% in 20 years, and at least 30% in 12 years. After a 20%-plus gain in a calendar year: The Nasdaq has returned an average of 17% during the next year.

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.