Santa Skipping Wall Street This Year
Every year, the stock market usually sees a boost in the last five days of trading before the year ends, known as the “Santa rally.” This period is marked by an increase in stock values due to holiday consumer spending and end-of-year investment. However, due to the current global and economic situation, it seems like Santa might be sitting out Wall Street this year.
In a CNBC interview, Amanda Agati, Chief Investment Officer of PNC Financial, cautioned that this year’s Santa rally might not live up to expectations and might have already happened.
Agati stated, “We’ve already had the Santa rally. We’re noticing some investor fatigue at the moment.”
This week, all three major stock indexes experienced declines, with the S&P 500 facing its most significant drop since September.
Amidst concerns about the Omicron variant and negative news circulating, Agati suggested that investors might be locking in their gains and preparing for the holiday break.
PNC Financial is throwing cold water on the fourth-quarter rally.
Omicron fears will take a heavy toll on risk appetites over the next two weeks, according to Chief Investment Officer Amanda Agati.@StephLandsman
— Trading Nation (@TradingNation) December 21, 2021
Despite the current challenges, Agati is hopeful that the situation won’t deteriorate drastically. If the Omicron variant doesn’t impact the market as severely as the original variant did, and with the existing support systems in place, which is likely, the market could see improvements in 2022.
