• Share this article: share this article: U.S. stocks ended the year on a weak note, leaving investors worried as the S&P 500 index barely moved during a Santa Claus rally.

While investors were chasing artificial intelligence-focused funds, the second season of Netflix's "Squid Game" failed, causing shares of Korean companies associated with the series to plummet.

U. S. stocks came to a halt as investors questioned whether the traditional Santa Claus rally will take place. Investors are questioning whether the traditional Santa Claus rally will happen. This year, the windows for the rally are the last five days of December and the first two days of January.

the S&P 500 Index rose 1.1% on the first day, but quickly lost momentum, falling 0.04% on Thursday. Today's futures suggest another decline, with a 0.4% drop expected by the start of trading.

Historically, the Santa Claus rally has consistently boosted the market, with an average return of 1.3% since 1950 and a typical seven-day gain of 0.3, well above the average return of 1.3%. This phenomenon was first noted by Yale Hirsch in his "Stock Trader's Almanac" in the 1970s, and according to Adam Turnquist of

LPL Financial, bull markets at this time of year usually herald a larger rally. But so far, Santa Claus seems to be stuck in traffic.

even if the rally fails, the S&P 500 Index is poised for its biggest gain against global markets since 1997. The boom in artificial intelligence and optimism about the U. S. economy has not been without its shocks, but this year has been one of the best yet. Thematic ETFs that invest in specific trends, such as cloud computing and renewable energy, have suffered losses. About $6.5 billion flowed out of these funds in 2024, with the ARC Innovation #ETF alone losing about $3 billion. AI was the shiny new toy this year, but it sucked the oxygen out of the room.

Some investors are already chasing the next big thing.

cryptocurrencies didn't sit still either.

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