The stock market has a well-documented tendency to deliver gains during the final trading days of December, a phenomenon known as the “Santa Claus rally.”
This period of optimism has historically brought cheer to investors, with the S&P 500 gaining in 64 out of the last 96 years during the Dec. 24–Dec. 31 window, averaging a respectable 0.85% return, according to data from Seasonax.
The Santa Claus rally's most memorable performance occurred in 2018, when the S&P 500 surged 6.6%, its strongest year-end rally on record. Close on its heels was 1933, which delivered a 5.5% rally.
On the flip side, 1937 and 2000 stand out as exceptions, with losses of 4.6% and 2.4%, respectively, over the same period.
The pattern holds true even during election years, offering hope to traders as 2024 wraps up. In the past 24 election years, the S&P 500 has posted gains in 15 instances, averaging a modest 0.7% return. Notable rallies occurred in 2008, with a 4% rise, and in 1928, when the index climbed 3.4%.
10 Santa Rally Hyper Responders
For traders looking to capitalize on this seasonal tailwind, certain stocks have consistently outperformed during the Santa Claus rally window.
Here are 10 notable S&P 500 stocks that have historically shone between Dec. 24 and Dec. 31 over the last 20 years:
| Company | Avg. Return | Median Return | Max Profit | Max Loss | Win Ratio |
|---|---|---|---|---|---|
| Newmont Mining Corporation NEM | +1.68% | +1.36% | +10.76% | -2.97% | 65% |
| Illumina, Inc ILMN | +1.49% | +1.25% | +10.08% | -2.64% | 60% |
| Western Digital Corporation WDC | +1.42% | +0.96% | +10.96% | -3.60% | 60% |
| Assurant, Inc AIZ | +1.41% | +0.56% | +14.33% | -4.07% | 65% |
| Mohawk Industries, Inc MHK | +1.32% | +1.22% | +8.81% | -3.94% | 65% |
| Global Payments Inc GPN | +1.32% | +0.95% | +8.14% | -1.51% | 75% |
| Walt Disney Co. DIS | +1.28% | +0.52% | +9.27% | -2.89% | 60% |
| Goldman Sachs Group, Inc GS | +1.27% | +0.39% | +10.40% | -1.41% | 70% |
| ON Semiconductor Corporation ON | +1.25% | +1.13% | +9.63% | -4.70% | 60% |
| Ralph Lauren Corp. (NYSE RL) | +1.19% | +0.51% | +8.21% | -2.36% | 65% |
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