Analysis: US stocks have entered the "Christmas rally," with investors positioning early for optimistic expectations in 2026

BlockBeats News, December 23, the US stock market kicked off the traditional "Santa Claus Rally," with major stock indices generally closing higher. Both gold and silver reached new all-time highs, while platinum also approached record levels. The cryptocurrency market, however, surged and then pulled back. On Monday, the S&P 500 closed higher, erasing all of December's losses and is on track for an eighth consecutive monthly gain, marking the longest winning streak since 2018.

There are multiple drivers behind this rally. First, last Friday's record-setting "triple witching day" options expiration cleared a large number of bullish positions in the S&P 500's 6700-6800 range, creating room for stock prices to rise. The VIX volatility index fell below 15, reaching its lowest level since August, and short-term implied volatility continued to compress. Analysts believe that market makers' hedging needs have shifted to follow the trend, pushing the market into a "slow climb" rhythm.

Secondly, seasonal factors provide a favorable environment, as historical data shows that the end of the year is typically a strong period for the stock market. In addition, investors are positioning early for optimistic expectations for 2026, including accelerated growth in GDP and corporate earnings, as well as the potential transformation of AI trading. Federal Reserve Governor Milan stated that if the Fed does not continue to cut interest rates next year, there is a risk of recession; dovish remarks have further boosted risk appetite. From a technical perspective, the next psychological threshold for the market is 7,000 points on the S&P 500. (Wallstreetcn)