noun Internet Slang

Santa Claus rally

SAN-tuh KLAWZ RAL-ee · noun · informal

A tendency for stocks to rise around the year-end holidays.

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Definitions

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The Santa Claus rally is a seasonal tendency for stock prices to rise during the last five trading days of December and the first two of January. It is a widely watched calendar effect.

“Traders were hoping for a Santa Claus rally to close out the year green.”
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Santa Claus rally In A Sentence

Traders were hoping for a Santa Claus rally to close out the year green.

Origin & Usage

Named for the festive timing; the phenomenon was documented by Yale Hirsch in the Stock Trader's Almanac.

Variants Santa rally

People Also Ask

What is the Santa Claus rally?

It's the seasonal tendency for stock prices to rise during the last five trading days of December and the first two trading days of January.

Where does the term Santa Claus rally come from?

It's named for the festive year-end timing, and the effect was documented by Yale Hirsch in the Stock Trader's Almanac.

Does the Santa Claus rally always happen?

No. It's a historical tendency and widely watched calendar effect, not a guarantee; some years it fails to appear.

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