The Santa Claus rally refers to a seasonal tendency for the S&P 500 to rise over the last five days trading days of a calendar year and the first two of the new year. U.S. stocks pared early losses on Thursday, with the Dow wavering in and out of positive territory in recent trade.

U.S. equity futures moved lower in early Thursday trading, while Treasury bond yields remained elevated in the wake of the Federal Reserve's cautious rate stance, as investors hit pause on the early Santa Claus rally.

Some of the biggest winners were mega-cap tech stocks, with Tesla up by 6% while Broadcom, Netflix, and Amazon each gained about 2%.

Wall Street stocks headed lower on Thursday and U.S. benchmark Treasury yields scaled the highest level since April in light, post-Christmas trading.

Yes. The New York Stock Exchange and Nasdaq will both operate on half-day schedules, closing at 1 p.m., while bond markets will shut down at 2 p.m., and major U.S. financial markets will stay closed until Thursday’s normal trading session.

Since the start of 2024, the S&P 500 has never once closed below its 200-day moving average, according to Bespoke Investment Group. Barring a sharp selloff between now and the end of the year, this would be only the 12th time since 1952 that this has happened.

"Stocks tend to do well in the absence of news and this is why strength around holidays tends to occur," Ryan Detrick said.

US stocks looked set for a mostly muted open to a final, shortened trading session before the Christmas holiday,

Learn all about the Santa Claus Rally, a seasonal stock market trend with historical significance. Discover why it happens and some tips.

The Nasdaq Composite (NASDAQINDEX: ^IXIC) has advanced 34% year to date, and history says that momentum may carry into 2025. Since its inception in 1971, the Nasdaq has returned at least 20% in 20 years, and at least 30% in 12 years. After a 20%-plus gain in a calendar year: The Nasdaq has returned an average of 17% during the next year.