LAST UPDATE: 20.30
The key indicators of Wall Street are moving with small fluctuations in the last session of 2021, with the mood for investment risk to “deflate” the New Year’s Eve in the middle of the low festive trading volume. The Dow and S&P 500 are clearing the small losses recorded by the middle of the session and are now moving in positive territory, while the Nasdaq is falling slightly.
With most European markets closed or closing earlier on Friday, Wall Street trading is sluggish, closing a good year for markets and economies on a recovery trajectory from the effects of the pandemic crisis.
Although it is New Year’s Eve, Wall Street has a regular trading schedule as listed companies and investors close their trading records.
The lower trading volume appears to be boosting volatility in the last session of 2021, in a week marked by the new Dow high and the 70th record in 2021 for the S&P 500. Investors continue to weigh the potential impact of the new pandemic wave in economies, with most estimating that the new mutated strain of coronavirus will not derail recovery.
“The market is sluggish. It tends to fall slightly on the last day of the year,” said Thomas Hayes, chief executive of Great Hill Capital Llc.
On the pandemic front, the US 7-day average for cases rose to 344,543 on Thursday, from 301,477 on Wednesday, nearly four times as much as December 1 and 37% above the January 2021 daily high of 251,232. Hospitalizations continue to increase, but at a slower pace, as the daily average reached 81,847 on Thursday.
Airlines canceled hundreds of flights on Thursday due to a quarantine workforce due to an outbreak of coronavirus outbreaks. In addition, the Centers for Disease Control and Prevention has advised American citizens to avoid cruising, whether vaccinated or not.
Encouragingly, however, news came from South Africa, where the new Covid-19 mutation was first spotted last month, after the government announced today that it had surpassed the peak of the Omicron wave, with a “marginal” increase in deaths, at the same time as many countries in the world record records of infections. “According to our experts, Omicron reached its peak without [αυτό] “translate into a significant or worrying change in the number of hospitalizations,” said the minister despite President Modil Gungumbele.
In the meantime, his performance 10-year government bond The US dollar fell 1.1 basis points to 1.50% on Friday, while the dollar earns 0.1% according to the ICE US Dollar index.
Indicators – Statistics
On the dashboard, the industrial Dow adds 0.1% to 36,430 points, the widest S&P 500 marks marginal gains at 4,780 points and the tech Nasdaq is down 0.26% at 15,700.
From 30 shares that make up the Dow, 15 move with a positive sign and equal numbers with a negative. Home Depot (+ 1.55%) and Walmart (+1.2) lead the gains, while Boeing (-0.9%) and Golman Sachs (-0.65%) record the biggest losses.
Xeris Biopharma Holdings Inc. marks a 19% jump in approval for Recorlev, a drug it produces for the treatment of Cushing’s adult patients, a rare hormonal disorder.
Tesla shares are falling sharply as the auto industry recalls more than 475,000 of the Model 3 and Model S electric vehicles to deal with rear-view camera and trunk problems that increase the risk of a collision.
In corporate news, Advanced Micro Devices announced yesterday that the acquisition of the semiconductor company Xilinx will not close until the end of 2021, but expects the deal to be sealed in early 2022. Its share is currently strengthening by 1.8%.
Zepp Health Corp. cut its fourth-quarter revenue forecast, citing “greater-than-expected effects of the pandemic” and the lack of semiconductors worldwide. Its share trades with gains of 1.6%.
In addition, the UK Food and Drug Administration said it had approved Pfizer Paxlovid antiviral pill for people with mild covid-19 disease who have at least one risk factor for developing a serious illness. The share of the pharmaceutical company increased by 1.1%.
Strong gains in 2021 the Wall
So far this year, the S&P 500 has recorded the biggest rally of the three main indicators, recording gains of 27%, in a year that set a record 70. The Nasdaq is up 22%, while the Dow Jones is up almost 19%. The Russell 2000 small capitalization index also recorded gains of almost 14%.
The three main indicators point to best three years their from the corresponding period ending in 1999.
The energy sector is the big winner of the S&P 500 with a rally of 47.4% per year, followed by the real estate sector with an increase of more of 40%. Technology and financial products have been enhanced by more than 30%.
In the industrial index, Home Depot and Microsoft led the rally with a rally of more than 50% each. Alphabet, Apple, Meta Platforms and Tesla were the drivers of Nasdaq profits this year.
“2021 was another great year for US equities,” Chris Haverland of the Wells Fargo Investment Institute said in a note. “Markets have been supported by extremely accommodative fiscal and monetary policies.”
Strong corporate earnings also boosted US stocks. The estimated annual profit growth rate for 2021 is 45.1%, according to FactSet. This would mark the highest annual rate of profit growth for the index since FactSet began monitoring the measurement in 2008.
“The recovery of the economy and profits that started in 2020 was carried over to 2021, raising stock markets to record levels. While yields in 2020 were driven by the expansion of the price multiplier to profits, yields in 2021 were driven by rising profits “, noted Haverland.
The gains continued in 2021 despite the pandemic waves of the Delta mutation and, more recently, the Omicron. More than 53 million coronavirus cases and more than 820,000 deaths have been reported in the United States, according to the CDC. However, vaccinations and new public health protocols have boosted the investment climate.
The financial results for the fourth quarter of 2021, the pace of tightening monetary policy to be followed by the US Federal Reserve and the midterm elections in the US Congress will be the key factors for the course of the US market in its first months. 2022.
Some investors and strategic analysts see more difficulties in the second half of 2022, always in connection with the Fed tapering in order to curb persistent inflation.
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I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
