Stocks failed to deliver a so-called Santa Claus Rally, a trend first identified by Yale Hirsch and the "Stock Trader's Almanac" in 1972 as broad index gains over the final five t

In midday trading, the Dow Jones Industrial Average plunged 528 points, or 1.2%, to 42,796. The S&P 500 lost 1.7%, and the Nasdaq dropped more than 450 points, or 2.3%. All three indexes are still set for weekly gains, with the benchmark index now about 2.3% below its all-time high of 6,099.97 points clinched on Dec. 6.

U.S. stock futures were edging higher to start the week, extending some early gains to start the year. It’s a welcome relief after St. Nick decided not to visit the stock market. The rebound follows a disappointing spell after the Christmas holiday–the proverbial Santa Claus Rally,

Wall Street remains optimistic. The consensus price target for the S&P 500 in 2025 is 6715, 14% higher than where the blue-chip barometer ended in 2024.