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Santa Claus Rally: Definition and What It Means for Investors

By Kristi WaterworthUpdated Mar 5, 2026 at 4:41 PM EST | Fact-checked by Parker Hicks

Key Points

  • Santa Claus rallies boost stocks during the last 5 days of Dec and first 2 of Jan.
  • They occur roughly 80% of the time, historically yielding average gains of 1.3%.
  • Rallies can indicate higher returns in the coming year, influencing buying decisions.

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