Wall Street analysts caution that the traditional December 'Santa Rally' may not materialize this year due to heightened market volatility. RBC strategist Amy Wu Silverman noted that 2025 has not adhered to typical seasonal patterns, with AI valuation uncertainties and geopolitical tensions contributing to the unpredictability. Schwab Asset Management's Omar Aguilar observed that market momentum is waning, and the usual catalysts for a December rally appear weaker. While a potential Federal Reserve rate cut in December could serve as a catalyst, its timing remains uncertain. Despite the short-term volatility, there is long-term optimism for the S&P 500, bolstered by robust earnings and strong AI fundamentals.