U.S. Futures Rise as Traders Mull Virus, China Vow: Markets Wrap
(Bloomberg) -- U.S. stocks rose for a fourth day in thin trading as investors evaluated prospects for a year-end rally amid spiking coronavirus cases. Oil gained and the Treasury curve flattened.
The S&P 500 ended Monday near session highs, posting the 69th record close for 2021 with all major industry groups advancing. The tech-heavy Nasdaq 100 jumped 1.6%, outperforming other benchmarks. Oil climbed back above $75 a barrel in New York for the first time in a month. The two-year yield stayed higher after an auction while rates in the long end slipped.
“We like this, we love to see the Santa Claus rally continue,” Victoria Greene, founding partner and chief investment officer at G Squared Private Wealth, said on Bloomberg TV. “And I think the ability of equity markets to climb the wall of worry should not be underestimated.”
An annual event known as the “Santa Claus rally” kicked off Monday. Since 1969, the S&P 500 index has averaged a gain of 1.3% over the seven-day period, which includes the last five trading sessions of the year and the first two trading days of the new year, according to The Stock Trader’s Almanac.
Megacap stocks contributed the most to the S&P 500 gains, with Apple Inc., Microsoft Corp. and Meta Platforms Inc., the Facebook parent company, among top performers. Tesla Inc. capped its biggest gain over four days since March.
Travel stocks underperformed as flight cancellations over the Christmas weekend stretched into Monday, with winter storms pressuring carriers already short-staffed due to spreading Covid-19 cases. Anthony Fauci, President Joe Biden’s top medical adviser, indicated support for making vaccinations a requirement for domestic fights. Biden said he’s seeking to expand testing as demand surges.
JPMorgan Chase & Co. strategists said there’s little reason to fear that the rally that catapulted U.S. stocks to successive records this year will end anytime soon. In fact, it may get broader.
In Europe, the Stoxx 600 Index added to last week’s gains, while Asian stocks slipped. Chinese authorities began widespread disinfection measures in the western city of Xi’an, where an outbreak presents one of the country’s biggest challenges.
China’s central bank pledged greater economic support over the weekend, contrasting with steps by the Federal Reserve and other central banks to fight inflation by cutting stimulus.
What to watch this week:
- Hong Kong, Australian, Canadian and U.K. markets closed, Monday
- 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 1.4% as of 4 p.m. New York time
- The Nasdaq 100 rose 1.6%
- The Dow Jones Industrial Average rose 1%
- The MSCI World index rose 0.9%
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.1328
- The British pound rose 0.4% to $1.3443
- The Japanese yen fell 0.4% to 114.88 per dollar
- The yield on 10-year Treasuries declined one basis point to 1.48%
- Germany’s 10-year yield was little changed at -0.24%
- West Texas Intermediate crude rose 2.7% to $75.81 a barrel
- Gold futures were little changed
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