SPY - We're In For A Santa Claus Rally Alright — But It Might Be Subpar: Here Are 5 Reasons Why | Benzinga
The euphoria surrounding a potential Federal Reserve pivot has propelled all risky bets higher, and the upward momentum is expected to strengthen, thanks to the typical year-end Santa Claus rally. However, the upside may not have been of high quality, rendering this year’s “Santa Claus” rally lackluster, as reported by the Financial Times.
Here are five reasons why:
- The “Magnificent Seven stocks,” a collective term for seven of the biggest tech stocks, underperformed small-cap stocks last week, the report stated. The Invesco QQQ Trust (NASDAQ:QQQ), an exchange-traded fund tracking the performance of the 100 largest non-financial tech stocks, rose 3.36% in the week ending Dec. 15, compared to the 5.50% gain of the Russell 2000 Index of small-cap stocks.
- The FT report highlighted that Goldman Sachs’ custom ...