American stock markets return from Christmas holiday on bullish swing
by J. ANDERSON | VIEW 1172
The American stock markets carried the Christmas cheer over when they reopened on Monday, 27th December. Despite the threat of Omicron, the newest Covid-19 variant, stocks rallied seemingly promising investors good tidings to close out 2021 and usher in 2022.
Of the three US stock indices, the biggest gain was posted by S&P 500. A gain of about 1.4% saw the S&P 500 end the day at 4,791.19 points marking a record closing for the 69th time this year. Earlier during the trading hours, in a first in more than a month’s time, the S&P 500 went on to mark an intraday record.
Dow Jones and Nasdaq, meanwhile, went on to gain around 1% and 1.4%.
S&P 500 leads American markets' resurgence
Market analysts are expecting S&P 500 to account for significant returns in the week’s run that’s termed, “Santa Claus Rally”.
This week marks the last five business days of the ongoing year and the first two business days of the forthcoming year. 2021 has been particularly strong as far S&P 500 is concerned with the index reportedly accounting for a return of around 27% to its investors.
Shares of technology firms and energy firms were among the biggest gainers on Monday’s trading on the index. Microchip companies’ such as Nvidia and AMD were among those whose shares rose notably, to the tune of over 4% and 5% respectively.
Likewise, energy-based companies also gained on account of a rise in the value of crude. While Devon Energy’s shares soared by over 6%, Diamondback Energy gained almost 5% and APA Corp added more than 7% to its share value.
In a press note, Dubravko Lakos-Bujas, JPMorgan's analyst pointed out, “We do not expect Omicron to impact the growth outlook in any significant way, but rather it is likely to accelerate the end of the pandemic”.
With trade strategists predicting upward swing in the following days, the American markets look to be seeking to enter the new year on a promising note.