Stocks Risk Correction as Santa Claus Rally Disappoints

Reported 2 days ago

U.S. stocks are facing a potential pullback in early 2025 as the anticipated Santa Claus Rally did not materialize, with the S&P 500 down about 0.53% since December 23. Analysts note accumulated headwinds such as rising unemployment claims and Treasury yields, while the U.S. dollar strengthens, impacting earnings. Comparisons to past market corrections suggest a possible 10% decline is on the horizon, raising concerns about market breadth and bullish sentiment. Despite uncertainties, some analysts advise waiting to assess market behavior post-inauguration.

Source: YAHOO

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