The Santa Claus rally typically begins at the end of December, but Wall Street is already showing signs of holiday cheer, potentially leading up to another big year for stocks in 2026.

During the Thanksgiving-shortened week, the Dow Jones Industrial Average jumped more than 3%, the S&P 500 surged nearly 4%, and the Nasdaq leapt more than 4%.

That’s after selling off sharply earlier this month on fears that the AI bubble will burst and hints that the Federal Reserve won’t cut interest rates as much as anticipated.

“Santa’s back,” market veteran Ed Yardeni declared in a note on Saturday.

But panic-selling of bitcoin, which he and others on Wall Street have said was a factor in the earlier downturn, has subsided, and stocks are poised for a year-end rally.

Yardeni backed his view that th

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