Will the holiday magic work this year? The S&P 500 is flirting with record territory, but there's a twist—what if the Federal Reserve becomes the Grinch that steals the traditional year-end rally?

Market watchers are eyeing the Fed's next moves closely. Historically, December brings that warm, fuzzy feeling to portfolios. But with monetary policy still in flux and rate decisions looming, traders are split: Are we getting that seasonal pump, or will central bank jitters kill the vibe?

The setup looks promising on paper, yet macro uncertainty never sleeps. Could be fireworks, could be a fizzle.