S&P 500 closes at file, Dow provides 350 factors as buyers search for Santa rally

U.S. inventory indexes rose Monday as markets reopened after the Christmas vacation and buyers assessed the unfold of the omicron Covid-19 variant.

The S&P 500 gained 1.4% to shut at 4,791.29, marking its 69th file shut of the yr. The index additionally hit an intraday file for the primary time in additional than a month. The Dow Jones Industrial Common added 352.02 factors, or roughly 1%, at 36,302.38. The Nasdaq Composite ticked up 1.4% to fifteen,871.26.

Market strategists remained constructive on the general fairness outlook amid a surge in Covid circumstances. New research recommend the omicron pressure has a decrease danger of hospitalization than different Covid variants.

“We don’t count on Omicron to affect the expansion outlook in any vital method, however relatively it’s more likely to speed up the top of the pandemic,” JPMorgan’s Dubravko Lakos-Bujas mentioned in a word Monday.

Traders are searching for a Santa Claus rally to shut out a yr wherein the S&P 500 has returned greater than 27%.

The benchmark index traditionally beneficial properties through the Santa Claus rally — the ultimate 5 buying and selling days of the present yr and the primary two of the brand new yr. The interval begins Monday.

Expertise shares boosted the S&P 500 on Monday. Chip names like AMD and Nvidia have been among the many common’s prime gainers, respectively including 5.6% and 4.4%.

Power shares have been additionally among the many index’s leaders as oil costs moved larger. APA Corp added 7.3%, Devon Power gained 6.1%, and Diamondback Power rose 4.9%. The sector is about to complete the yr because the S&P 500’s top-performing group.

Vacation gross sales rose 8.5% in 2021 from final yr, the quickest tempo in 17 years, in keeping with Mastercard information. The outcomes got here regardless of a backdrop of provide chain disruptions, larger costs and the omicron variant in the previous few weeks of buying. Retail shares like Ralph Lauren and Ross Shops gained.

Shares of GoDaddy jumped 8.4% after reviews that activist investor Starboard Worth LP took a 6.5% stake within the area registrar.

Nevertheless, journey shares have been decrease Monday as Covid disruptions hit these sectors.

Airline shares fell after a vacation weekend that noticed hundreds of flights canceled as a consequence of Covid-related points. The omicron variant led to a staffing scarcity at a time when airways have been trying to ramp up their schedules to fulfill excessive journey demand. Delta Air Strains, United Airways and American Airways all closed decrease.

Cruise line shares additionally retreated after Covid outbreaks on ships. Royal Caribbean slid 1.4%, Carnival fell 1.2% and Norwegian Cruise Line dipped 2.6%.

U.S. infectious illness knowledgeable Dr. Anthony Fauci mentioned Sunday that circumstances of Covid-19 are probably going to maintain surging because the omicron variant quickly spreads throughout the globe. Fauci warned in opposition to getting complacent.

“Each day it goes up and up. The final weekly common was about 150,000 and it probably will go a lot larger,” Fauci mentioned on ABC’s “This Week.”

Inventory picks and investing traits from CNBC Professional:

—CNBC’s Jessica Bursztynsky and Maggie Fitzgerald contributed to this text.

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