The Santa Claus rally has commenced, with strong performance noted in U.S. stock markets during the holiday season. Historically, this rally occurs during the last five trading sessions of December and the first two trading days of January, often resulting in gains for investors. Notably, the S&P 500 index closed 1.1% higher on Christmas Day, marking its strongest Christmas Eve performance in five decades and bringing it back above 6,000. Analysts are optimistic about continued gains in 2025, following two standout years for the market. The Federal Reserve's recent interest rate cuts and a growing economy have also contributed to the positive outlook for investors, as the S&P 500 is on track to deliver significant returns.