Will Saint Nick arrive early this year? Investors are readying themselves for the possibility of a “Santa Claus rally,” a phenomenon wherein financial markets surge in the last five days of trading at year’s end, and the first two trading days of the new year. Today marks the beginning of that window.

As of midday Friday, stocks seemed to be trending in the direction of a rally with stock indices showing modest gains. 

Observers are torn about what causes the annual Christmas bump, but the data is clear enough. The S&P 500 has seen a Santa Claus rally in each of the past seven years, and 57 times out of the last 70. The reason could be anything: Good old-fashioned holiday cheer, a collective Christmas shopping spree or even the overconsumption of eggnog.  

You better not shout: Regardless of what happens over the coming week, it’s possible investors have already dug the biggest treats out of their Christmas stockings. 

U.S. indices have been climbing. Canadian stocks surged all through December, reversing a downturn in September and October spurred by inflation worries. The S&P/TSX composite index is up more than 650 points over the last 30 days, led by gains from large-cap companies like Canadian National Railway, Shopify and BMO. 

You better not cry: Santa rally or not, there’s plenty of reason for optimism. Canadian consumer confidence has remained robust despite wariness over rising interest rates. Canada’s economy grew modestly in November, potentially putting the country on track for a soft landing. 

Inflation appears more under control as price growth flattens out, though it’s also driven increased holiday demand at the country’s food banks—they would welcome your donations this weekend. 

While consumers may not feel it in their pocketbooks just yet, wage growth has outpaced inflation for months now, suggesting that the recent period of outrageously high prices is gradually ebbing. Perhaps that will bolster the confidence of any reader who still needs to do some last-minute holiday shopping, or any reader who’s just looking forward to the Boxing Day sales.