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

The “Santa Claus Rally” has officially bombed. U.S. stocks are set to close 2024 with back-to-back losses during the holiday trading period, a rare and unwelcome event that’s happened only twice before in market history. Investors counting on the traditional year-end bump to pad their portfolios are getting coal instead. Early Monday, stock futures pointed to more pain. Dow Jones futures dropped 81 points, or 0.19%. S&P 500 futures fell by 0.16%, while Nasdaq-100 futures stayed flat. The major indices are still logging a strong 2024 overall, but December has been a brutal month. The S&P 500 is down 1%, and the Dow has slid 4.3%, their worst monthly performances since April. Even with these losses, the S&P 500 is up 25.2% for the year, and the Dow has gained 14.1%. The Nasdaq Composite , up 31.4%, is the clear winner for 2024. But no one’s celebrating right now. The “Santa Rally,” a historically bullish stretch that includes the last five trading days of December and the first two of January, is failing to materialize. Historically, the S&P 500 averages a 1.3% gain during this period, according to LPL Financial. This year? Not so much. Instead, Friday’s selloff and mounting year-end profit-taking have left investors in the lurch. Nasdaq shines, Bitcoin fizzles Even with the broader market wobbling, the Nasdaq is wrapping up a stellar fourth quarter. It’s up 8.4%, its longest winning streak since 2021. The S&P 500 isn’t far behind, up 3.6% for the quarter, its fifth straight positive run. The Dow was not so lucky. It’s limping to a 1.6% quarterly gain, barely scraping by. Crypto enthusiasts, meanwhile, are watching Bitcoin lose steam. The apex crypto, which soared earlier this year on President Donald Trump’s pro-crypto policies, is now sputtering. As of press time, Bitcoin was worth around $93,420, about $15,000 below its all-time high of $108,400. Smaller players like Ether and Dogecoin are also struggling to find their footing. Expectations for Federal Reserve rate cuts have cooled the market’s speculative frenzy. Investors are now looking ahead to Trump’s January 20 inauguration, hoping for clarity on his crypto agenda. Bitcoin’s still up 120% for the year, far outpacing traditional investments like stocks and even gold and silver. From Zero to Web3 Pro: Your 90-Day Career Launch Plan