US stock indices rallied on Tuesday, a day after the record close for the S&P 500 amid low cash flow in the last days of the year.
The S&P 500 switched between small gains and losses, touching a new intraday rise in morning trade. The broader market index rose 1.4% On Monday. It has recently declined 0.2%. The Dow Jones Industrial Average rose 0.1%, while the Nasdaq Composite fell 0.6%.
Shares have been buffeted in recent weeks by the spread of the Omicron variant as governments around the world have imposed restrictions in an effort to prevent epidemics. But some recent studies have suggested that this variant may increase the risk of mild illness and hospitalization.
Centers for Disease Control and Prevention Reduced recommended isolation period Try to minimize the inconvenience to some people who test positive. Still, Many economists have cut back Their forecasts for economic growth in the first quarter of next year.
“Hope emerges from the markets that Omicron will not disrupt the economic recovery,” said Antonio Caverro, investment head of General Insurance Asset Management. “There is no visible risk reduction.” He said this was due to low cash flow from fewer people working during the holidays.
Stock investors are keeping an eye on an event called the “Santa Claus Rally”. Indices like the S&P 500 tend to rise in the last five days of the year and the first two days of the new year. According to the stock trader’s almanac, such a rally takes place every five years at the end of the fourth.
“It’s because people are starting to stabilize. People are reading the 2022 estimates and planning for next year,” said Jeffrey Myers, a consultant on blocking funds and family offices in market securities.
Governments and policy advisers Shows signs of picking up a lighter touch The fast-spreading Omigran variant seeks to move the economy with policies such as reducing isolation times and sometimes advancing socio-distance controls. Vaccine makers were mixed
4.4% and Moderna 0.6% lower.
The news also helped shares of travel and energy companies, with Carnival up 1.6%
Increased by 0.9%.
David Kodok, chief investment officer at Cumberland Consultants, said the reduction in isolation time was favorable for investors and encouraged market participants to look beyond the Omicron Rise. But it also risks allowing the Govt-19 virus to change, spread and destabilize economies, he said. He shares overweight healthcare.
“It’s not over, the markets want to celebrate the end, but the virus does not care about the needs of the markets,” Mr Kodok said.
Globally, benchmark Brent crude rose 0.45% to $ 78.57 a barrel.
The yield on the benchmark 10-year Treasury note fell to 1.466% on Monday from 1.480% for the third day in a row. The two-year yield reached 0.754% and short-term bond yields increased.
S&P CoreLogic Case-Shiller National Home Price Index, which shows average home prices in major cities across the country. US home price growth slowed in October. Shares of home builders rose during Tuesday’s session
0.6% and Taylor Morrison up 0.88%.
Revenue season has largely declined. A few more reports include egg maker Call-Mine Foods, which is expected to release the results on Tuesday after the markets close.
Bitcoin traded down 5.4% from its level on the ET at 5pm on Monday, trading at around $ 48,224. The cryptocurrency has reached around $ 50,000 in value over the past five days.
Overseas, Pan-Continental Stoxx Europe 600 added 0.6%.
The Turkish lira was up 1.4% at 11.9 against the dollar. The value of the currency strengthened after the government announced A new economic plan last week. President Recep Tayyip Erdogan “may have bought Turkey for a while but it’s not a big story yet,” Mr. Myers said. Speculative investors may close short positions before the long holiday weekend and now weigh the lira and put them back, he said.
In Asia, most key criteria were raised. The Shanghai Composite was up 0.4% and Hong Kong’s Hong Kong Sheng was up 0.2%. Japan’s Nikkei 225 gained 1.4%, driven by gains in technology stocks.
Overcoming early gains, it rose 3.8%. Said the highly indebted real estate developer Construction began again More than 90% of it was discontinued in residential projects. It also said it would offer apartments quickly to home buyers.
Write to Anna Hirtenstein at email@example.com
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