Stocks Gain to Post Year’s 70th Record Close: Markets Wrap
(Bloomberg) -- U.S. stocks rose in thin trading as the slump in tech stocks abated amid speculation the economic recovery can weather the surge in coronavirus cases. Treasuries fell along with the dollar.
After spending much of the session little changed, the S&P 500 rose to reach the 70th record close of the year. The Dow Jones Industrial Average also ended the day at an all-time high, while the Russell 2000, a proxy for the reopening trade, rebounded. The tech-heavy Nasdaq 100, too, staged a comeback, erasing earlier losses.
Omicron fears are easing on growing evidence that the fast-spreading strain leads to milder symptoms, even as worldwide Covid-19 cases rose above 1 million for a second straight day. Coronavirus developments along with Federal Reserve policy tightening and China’s outlook rank among the key risks for 2022.
“We just might get a relatively calm last week of the year after all,” Matt Maley, chief market strategist for Miller Tabak + Co. wrote. “That said, thin markets can change on a dime, so investors will want to stay nimble.”
Treasuries fell, sending the 10-year yield up as much as 7.4 basis points to 1.55%, breaching the 50-day moving average that has contained it since Nov. 29. The dollar weakened against all of its Group-of-10 peers except the yen.
“I think the economy is going to be very strong, I think the Fed will continue its policy of keeping rates very low, disappointing aggressive people,” Margie Patel, senior portfolio manager at Allspring Global Investments, said on Bloomberg TV. “And I think the stock market may well surprise on the upside and have another very, very good year after a very good year in ‘21.”
What to watch this week:
- U.S. initial jobless claims, Thursday
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
- The S&P 500 rose 0.1% as of 4 p.m. New York time
- The Nasdaq 100 was little changed
- The Dow Jones Industrial Average rose 0.2%
- The MSCI World index was little changed
- The Bloomberg Dollar Spot Index fell 0.2%
- The euro rose 0.3% to $1.1348
- The British pound rose 0.4% to $1.3484
- The Japanese yen fell 0.1% to 114.97 per dollar
- The yield on 10-year Treasuries advanced seven basis points to 1.55%
- Germany’s 10-year yield advanced five basis points to -0.18%
- Britain’s 10-year yield advanced nine basis points to 1.01%
- West Texas Intermediate crude rose 0.7% to $76.50 a barrel
- Gold futures fell 0.3% to $1,805.40 an ounce
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