S&P 500 set to inch toward another record as stock futures move higher

view original post

By Barbara Kollmeyer

Stock futures were rising on Tuesday, and indicating that the S&P 500 could be poised for yet another record-breaking session, as investors look toward 2022 with optimism, despite record COVID-19 cases.

How are stock-index futures trading?

On Monday, the S&P 500 rose 65.40 points, or 1.4%, to 4,791.19, its 69th record finish for 2021. The Dow Jones Industrial Average climbed 351.82 points, or 1%, to end at 36,302.38, its fourth-highest close in history. The Nasdaq Composite climbed 217.89 points, or 1.4%, to close at 15,871.26.

What’s driving markets?

Investors kicked off the start of the week with a rally, building optimism that the so-called Santa Rally, which tends to show up for U.S. stocks in the final week of December and first two trading sessions of January, has taken hold. In fact, that rally is off to its best start since 2000-01.

“It seems that last week’s reports confirming that the omicron coronavirus variant is not as deadly as prior strains, kept market participants willing to increase their exposure this week as well,” said Charalambos Pissouros, head of research at JFD Group.

While COVID-19 continues to spread around the globe, particularly wreaking havoc for airlines and travel due to rising cases among workers, investors remain of the opinion that the global economy can handle it. The Centers for Disease Control and Prevention has cut its recommended COVID-19 isolation time to five days, from 10, if affected individuals are symptom-free.

Apple (AAPL) said it would temporarily close 11 New York City stores as a precaution against rising cases. And major cities around the world, including New York City, are paring down New Year’s Eve celebrations as a way of combating the virus’ spread.

Read:Big Tech heads for ‘a year of thousands of tiny tech papercuts,’ but what antitrust efforts could make them bleed?

In a light week for economic data, investors will get the S&P Case-Shiller U.S. house price index for October at 9 a.m. Eastern Time.

Alongside stock futures, oil prices climbed, with February crude futures up 1.3% to $76.58 a barrel. The yield on the 10-year Treasury , meanwhile, was down 1 basis point to 1.472%.

-Barbara Kollmeyer

 

(END) Dow Jones Newswires

12-28-21 0616ET

Copyright (c) 2021 Dow Jones & Company, Inc.