US Stock market predictions for Monday, December 30: S&P 500, Nasdaq expect Wall Street Santa Claus rally, all eyes on 'Magnificent Seven' stocks

US stock market's main indexes -- S&P 500, Dow Jones, Nasdaq -- are likely to trade in green as the Wall Street is witnessing the Santa Claus rally. All eyes are on how the "Magnificent Seven" stocks perform.

"Magnificent Seven" stocks are Google and YouTube's parent company 'Alphabet', 'Amazon', 'Apple', 'Microsoft', 'Nvidia', 'Tesla', and Facebook, Twitter and WhatsApp owner "Meta Platforms".

Stocks tend to do well in the last five trading days of December and into the first two days of January, a phenomenon dubbed the Santa Claus rally, which has driven S&P gains of an average of 1.3 per cent since 1969, according to the Stock Trader's Almanac, Reuters reported.


Despite the Friday selloff, for the last five trading sessions, the S&P rose 1.77 per cent, while the Nasdaq was up 1.8 per cent, as per the Reuters report.

The S&P 500 rose roughly 25 per cent in 2024 through December 27, while the technology-heavy Nasdaq Composite index which surpassed 20,000 for the first time in December, is up over 31 per cent, Reuters reported.

Wall Street will have more economic updates to look forward to next week, including reports on pending home sales and home prices. There will also be reports on U.S. construction spending and snapshots of manufacturing activity.

On Friday, S&P 500 fell 66.75 points, or 1.1 per cent, to 5,970.84. Roughly 90 per cent of stocks in the benchmark index lost ground, but it managed to hold onto a modest gain of 0.7 per cent for the week.

The Dow Jones Industrial Average fell 333.59 points, or 0.8 per cent, to 42,992.21. The tech-heavy Nasdaq composite fell 298.33 points, or 1.5 per cent, to 19,722.03.

FAQs

Q1. What are three main indexes of Wall Street?
A1. Three main indexes of the Wall Street are -- S&P 500, Dow Jones, Nasdaq.

Q2. What is Santa Claus rally?
A2. Stocks tend to do well in the last five trading days of December and into the first two days of January, a phenomenon dubbed the Santa Claus rally.