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Stock market's snapback makes a Santa rally more likely, traders say

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Traders work on the floor of the New York Stock Exchange.
NYSE

A resilient stock market shook off much of its losses Monday, signaling there's a good chance a Santa rally will lift the market higher into year-end.

The Dow Jones Industrial average closed up slightly, but it recovered about 450 points from its worse losses. The Dow ended the day at 30,216, up 37 points, while the S&P 500 was at 3,694, off 14 points or 0.4%. The Nasdaq was off 13 points to 12,742.

Stocks sold off sharply in early trading on news about more lockdowns in the U.K. because of a mutation of the virus there. Some analysts said the rebalancing of the S&P 500 on Friday afternoon, to include Tesla for Monday trading was also a factor, since index investors had to sell other S&P stocks to make room for the electric car maker.

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