Santa Rally fails as US stocks post back-to-back losses, Bitcoin sheds $15,000

Santa Claus Rally Stumbles

U.S. stocks are facing a disappointing end to 2024, experiencing back-to-back losses during the holiday trading period. This is a rare occurrence, only happening twice previously in market history.

Investors anticipating the traditional year-end boost to their portfolios are instead facing a downturn. Stock futures indicate further pain on Monday, with Dow Jones futures dropping 81 points and S&P 500 futures falling 0.16%. Nasdaq-100 futures remain flat.

While the major indices are still enjoying a strong 2024 overall, December has been a challenging month. The S&P 500 has declined 1% and the Dow has slid 4.3%, marking their worst monthly performances since April. Despite these losses, the S&P 500 is still up 25.2% for the year, and the Dow has gained 14.1%.

The Nasdaq Composite stands as the clear winner for 2024, with a 31.4% rise. However, the so-called "Santa Rally," a bullish period typically encompassing the last five trading days of December and the first two of January, has failed to materialize this year.

Historically, the S&P 500 has averaged a 1.3% gain during this period. However, this year, Friday's selloff and increased year-end profit-taking have left investors disheartened.

Nasdaq Shines, Bitcoin Stumbles

Despite the broader market's struggles, the Nasdaq is wrapping up a stellar fourth quarter, gaining 8.4%. This is its longest winning streak since 2021. The S&P 500 is not far behind, up 3.6% for the quarter, its fifth consecutive positive run. The Dow has been less fortunate, limping towards a 1.6% quarterly gain.

Meanwhile in the cryptocurrency market, Bitcoin is losing momentum. The apex crypto, which soared earlier this year on President Trump's pro-crypto policies, is now facing a downturn. As of this writing, Bitcoin is valued at around $93,420, approximately $15,000 below its all-time high of $108,400.

Smaller cryptocurrencies like Ether and Dogecoin are also facing challenges. Hopes for Federal Reserve rate cuts have dampened the market's speculative fervor.

Investors are now looking ahead to Trump's January 20 inauguration, hoping for clarification on his crypto agenda. Bitcoin remains up 120% for the year, outperforming traditional investments like stocks and precious metals.