Don’t give up on a ‘Santa Claus rally’ just yet — even after a rough December start for stocks

The stock market’s momentum appears to have stalled in December, with the S&P 500 sitting on a monthly loss heading into the final full week of the calendar year. But that doesn’t mean a hoped-for “Santa Claus rally” won’t materialize, according to analysts.

For reference, the Santa Claus rally refers to a seasonal pattern in which stocks have historically tended to rise during the last five trading days of December and the first two trading days of January. This year, it begins on Dec. 24, Christmas Eve.

A late-year rally, if it materializes, could help set the tone for markets heading into the new year, as investors debate how much longer a bull market that has already lasted more than three years can continue.

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