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.

Stocks fell on Thursday, further dampening investor hopes for a Santa Claus rally this year. Historically, a weak beginning to the year hasn't been a good sign for stocks.

The U.S. stock market had a banner year, but the holiday season has been far from festive. The S&P 500 logged 57 record highs in 2024, the sixth most since 1928, while also recording consecutive 20% gains for the fifth time on record.

Stocks will look to rebound from a sluggish start to the "Santa Claus" rally in the final trading days of 2024.

Traders had hoped a banner year for the S&P 500 would end in a "Santa Claus Rally"—a run-up commonly seen over the last five trading days of a year and the first two of the next. While Thursday and Friday trading could bring a turnaround,

Some of the biggest winners were mega-cap tech stocks, with Tesla up by 6% while Broadcom, Netflix, and Amazon each gained about 2%.

Wall Street is eager for a so-called Santa Claus rally to propel the S&P 500—up about 25% this year through Monday's close—to new highs. According to Wall Street lore, the stock market consistently rises during the final five trading days of the year and the first two sessions of the next. This year, that stretch starts today.

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.

The stock market rally fizzled as 2024 wrapped up. That has led a new set of buying opportunities among leaders that pulled back to key levels.