Every year, investors look forward to the “Santa Claus rally,” a period that encompasses the final five trading days of December and the first two trading days of the new year. Since 1950, the S&P 500 has gained, on average, 1.3% during this stretch, while finishing higher nearly 80% of the time, according to Dow Jones Market Data.

According to Fairlead Strategies founder Katie Stockton, the recent weakness in the stock market flashed a technical "sell" signal.

U.S. stock futures rose on Friday, putting the market on course to pare back its losses from a disappointing start to 2025. Contracts tied to the S&P 500 were up 0.1%. The benchmark index has fallen f

The tech-heavy Nasdaq Composite fell 1.58% while the S&P 500 lost 1.12%. The Dow Jones shed 333 points to end the day.