How Has the Stock Market Performed Around New Year's Day?

How Has the Stock Market Performed Around New Year's Day?

A so-called Santa Claus rally happens when stocks rise during the last five trading days of December and the first two of January.

This year's rally period hasn't begun well. Over the four trading sessions through Monday, the Dow Jones Industrial Average has lost 0.8%, while the S&P 500 has fallen 1.1%. The Nasdaq Composite has declined 1.4%.

The first five trading days of the new year don't have a flashy name, but stocks typically rise in this window. The Dow, the S&P 500, and the Nasdaq Composite have averaged gains of 0.1%, 0.3%, and 0.45%, respectively, during this span over the past 20 years, according to Dow Jones Market Data.