U.S. stocks drifted lower Tuesday as investors returned from the three-day Christmas weekend, with bulls holding out for a seasonal “Santa Claus rally” after a premarket lift was attributed to China’s decision to lift Covid quarantine requirements for inbound travelers, raising hopes the world’s second largest economy may recover in 2023.
See more: What to expect for the stock market in 2023 after the biggest decline since the financial crisis Read more: How a Santa Claus rally, or lack thereof, sets the stage for the stock market in first quarter “This is certainly something that traders and investors have been hoping for a long period of time as China remained very strict with its zero-covid policy throughout this year,” said Naeem Aslam, chief market analyst at AvaTrade, in a note to clients.