Santa Claus rally


Santa Claus Rally

Seasonal rise in stock prices in the last week of the calendar year, between Christmas and New Year's Day.

Year-End Rally

A rise in stock prices that sometimes occurs on the trading days between Christmas and New Year's Day, occasionally extending into the first few trading days of January. Year-end rallies are thought to occur in anticipation of the January effect, which is a rise in demand for stocks resulting from the increased liquidity among investors who closed positions prior to the end of the year for tax purposes. A year-end rally is also called a Santa Claus rally.

Santa Claus rally

A rise in security prices that occurs during the last week of the calendar year and during the first few days of the new year. Also called year-end rally.