The term "Santa rally" refers to a phenomenon in financial markets where stock prices tend to experience a positive upward movement in the last week of December, typically around Christmas and New Year's. This rally is often attributed to several factors: 1. Holiday optimism: Many traders and investors tend to be more optimistic during the holiday season, which can lead to increased buying activity and a positive sentiment in the market. 2. Year-end window dressing: Portfolio managers and fund managers may engage in "window dressing" by buying top-performing stocks to make their portfolios look better at the end of the year. This can contribute to the upward movement in stock prices. 3. Low trading volume: Trading volume tends to be lower during the holiday season due to vacations and redu