Overview
- The seven-session period that spans the last five trading days of December and the first two of January began on Dec. 24.
- U.S. stocks hovered near record highs with the S&P 500 edging higher to start the window as trading volume ran about 50% below recent averages.
- Historically, this stretch posts modest gains of roughly 1.2%–1.6% on average, and some investors view it as an early signal for the new year rather than a guarantee.
- Optimists cite improving market breadth, small‑cap momentum and expectations for two Fed rate cuts next year as potential supports for equities into 2026.
- Caution persists as more than four in ten financial advisors foresee a less healthy economy by the end of next year and some analysts warn gains could be limited before a potential correction.