Stocks Rally 10% Since October on Cooling Inflation and Economic Optimism, But Gains May Slow heading into Quiet December Finish
• Stocks have rallied 10% since late October, fueled by cooling inflation, a resilient economy, and renewed AI optimism
• The early “Santa rally” may leave December a quiet month, with traders worn out after a volatile year
• Explanations vary, but December is historically the S&P 500’s strongest month, returning 1.4% on average
• Positive economic signals like strong GDP and jobs data have lifted spirits, while bonds have stabilized
• With targets met and catalysts lacking, further gains may be limited - setting up a quiet end to the year