U.S. stocks were closed on Monday (26th) due to the Christmas holiday, and U.S. financial markets, including the New York Stock Exchange and Nasdaq, were closed. Trading of U.S. crude oil and foreign exchange contracts was suspended throughout the day, and trading of Brent crude oil futures contracts under ICE was suspended throughout the day.
With many on Wall Street already on vacation and U.S. markets closed on Monday, stock market liquidity is expected to be at its lowest level for the year. Market trends are still expected to depend on whether inflation shows signs of subsiding, and some investors are pinning their hopes on the Santa Claus Rally at the end of the year.
The most optimistic factor for the stock market this week comes from investors’ anticipation of the Christmas market. The so-called Christmas market comes from the last five trading days of the year and the first two trading days of next year, which means that it starts from last Friday and ends on January 4 next year.
The S&P 500 gained an average of 1.3% over the period, according to Stock Trader’s Almanac. There’s no agreed-upon clear explanation for the performance, but some theorize that holiday shopping, seasonal optimism and institutional investor settlements may help drive this trend.
Tesla CEO Elon Musk warned that stock pledges should not be made amid global economic instability because of the risk of mass panic in U.S. stocks.
Musk also reiterated that his recession is long overdue, and that the size of the recession could be very similar to that in 2009.
“My best guess is that we’re going to have a year to a year and a half of stormy periods, and then, around the second quarter of 2024, the dawn will dawn. Economic booms won’t last forever, but neither will recessions. Forever,” Musk said.
The rise and fall of US stocks in the previous trading day: Today’s important economic data:
Important stock dynamics: 1. Tesla (TSLA-US)
As the new crown pneumonia epidemic in China is rapidly deteriorating, internal notices and two people familiar with the matter revealed that Tesla, a major American electric vehicle manufacturer, temporarily stopped production at its Shanghai plant last Saturday (24th), one day earlier than originally planned.
Tesla was originally scheduled to suspend Model Y production at the Shanghai plant from Sunday to January 1 next year. In the last week of December last year, the Shanghai plant still maintained normal operations, so it is not customary to shut down at the end of the year. A surge in the number of people infected in China and workers at Tesla and suppliers have also tested positive, people familiar with the matter said, posing challenges to factory operations over the past week.