The traditional market “Santa rally” — a seasonal phenomenon in which stocks often rally through November and December — has been conspicuous by its absence this year, as fears about massive spending on infrastructure by highly valued artificial intelligence companies have weighed on investors’ minds.

“December is often synonymous with buoyant equities,” wrote analysts at Bank of America. “But this year’s backdrop is anything but ordinary. From AI-driven volatility to shifting Fed expectations?.?.?.?investors are navigating a landscape where traditional year-end patterns could be challenged.”

On average, since 1928, the S&P 500 has risen 4 per cent between October 28 and New Year’s Eve, Deutsche Bank analysis showed. This year, both the S&P 500 and the tech-heavy Nasdaq Composite are in negative territory in that period so far.