Since the start of 2024, the S&P 500 has never once closed below its 200-day moving average, according to Bespoke Investment Group. Barring a sharp selloff between now and the end of the year, this would be only the 12th time since 1952 that this has happened.

Stocks are broadly higher in trading on Wall Street, led by gains in Big Tech stocks. The S&P 500 was up 0.7% Tuesday.

Traders are also weighing the outlook for interest rate cuts in 2025 in light of recent inflation data. Personal consumption expenditures inflation, the Fed's preferred inflation measure, rose 2.4% year-per-year in November, slightly under expectations.

The Dow Jones Industrial Average went up 66.69 points or 0.2% to end at 42,906.95 for its third straight daily gain, according to Dow Jones Market Data. The S&P 500 went up 43.22 points or 0.7% to finish at 5,974.07.

The second half of December is typically the second-strongest period of the year for U.S. equities, according to Bank of America.

Tuesday kicks off a historically merry period for investors, a stretch known familiarly as the Santa Claus rally for the positive stock market returns typically enjoyed during the holiday season, potentially bringing further gains to a largely cheery 2024 for equities.

Stocks have seen a stellar 2024, but the S&P 500 is in danger of a rare December loss. It’s all riding on the so-called Santa Claus rally.

European stocks bounced around Monday while US equities shook off early weakness to push higher as investors waited to see if a so-called Santa Claus rally sweeps over the market.