CNBC Pro

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

Share
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.

More In Pro Insight

CNBC ProGoldman sees a trade in some less risky SPACs amid market washout
watch now
VIDEO03:46
CNBC ProGeneral Motors, General Electric and Rocket Companies— Halftime traders weigh on buys and sells
CNBC ProBitcoin just formed a 'golden cross' chart pattern, which has heralded big gains in the past