The Christmas and New Year holidays can have an impact on financial markets. During this time, there tends to be reduced trading activity as many market participants take time off. This lower liquidity can result in increased volatility, particularly in markets with lower trading volumes. Additionally, many financial markets worldwide either close or have shortened trading hours on Christmas Day and New Year's Day, contributing to lower liquidity and potential market fluctuations. Some investors may engage in year-end portfolio adjustments and tax-related transactions, influencing asset prices and trading volumes. While electronic trading has lessened the impact of holiday closures, investors should be mindful of the potential for reduced liquidity and increased volatility during the holiday season. 

The "January Effect," where small-cap stocks historically outperform in January, is also observed, often attributed to year-end tax considerations and portfolio adjustments. Overall, the impact can vary, and it's advisable for investors to stay informed about market announcements and special trading conditions during the holiday period.