Christmas Rally Stock Market 2024. We look at stock market performance during the santa claus rally period and consider whether it's a holiday gift—or just another trading week. The santa claus rally, also known as the “december effect,” is an observation stating that stock markets tend to have higher returns during the month of december.

Heading into the last few trading days of 2023, many investors will be hoping for a santa claus rally, or a sustained increase in the stock market around the christmas holiday. Stocks have historically outperformed between christmas and new year, on average, offering a return of around 1%.