
A longstanding theory suggests that U.S. stocks typically experience gains in January compared to other months. However, recent sentiment among investors indicates growing skepticism regarding this phenomenon. Notably, data from the past indicates that 14 of the last 18 post-presidential election years have aligned with January's market direction, suggesting that January's performance could be indicative of the broader market trends for the year. Additionally, a striking statistic reveals that in December 2024, 76.2% of trading days saw more S&P 500 stocks closing down than closing higher, marking the highest percentage of down days in 35 years. This trend raises questions about the market's trajectory as January unfolds, particularly given that the S&P 500 recorded declines on both the last trading day of 2024 and the first day of 2025, a pattern observed in the previous three years. Despite this, the market showed resilience in 2023 and 2024, leading some analysts to caution against overreliance on these trends.
Is the Stock Market’s ‘January Effect’ Real? https://t.co/NPMTKDCJAg
For decades, a popular theory has held that US stocks tend to rise more in January than in other months. Now, many investors are skeptical of the phenomenon https://t.co/H2JCDRqLw1 via @markets @JessicaMenton
S&P 500 down the last trading day of the year and first day of the following year? Happened the past 3 years actually and '23 and '24 both did fine. I wouldn't ever invest in just this, but interesting given all the talk about recent weakness. https://t.co/OOnujvo8YR
