S&P 500 closes at record, Dow adds 350 points as investors look for Santa…

S&P 500 closes at record, Dow adds 350 points as investors look for Santa...

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 almost 1.4% to shut at 4,791.19, marking its 69th document shut of the yr. The index additionally hit an intraday document for the primary time in additional than a month. The Dow Jones Industrial Common added 351.82 factors, or roughly 1%, at 36,302.38. The Nasdaq Composite ticked up about 1.4% to fifteen,871.26.

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

“We don’t anticipate Omicron to impression the expansion outlook in any vital manner, however reasonably it’s prone to speed up the top of the pandemic,” JPMorgan’s Dubravko Lakos-Bujas mentioned in a notice Monday.

Buyers are in search of a Santa Claus rally to shut out a yr wherein the S&P 500 has returned greater than 27%.

The benchmark index traditionally features throughout 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 started Monday.

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

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Vitality shares had been additionally among the many index’s leaders as oil costs moved increased. APA Corp added about 7.3%, Devon Vitality gained almost 6.1%, and Diamondback Vitality 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 response to Mastercard knowledge. The outcomes got here regardless of a backdrop of provide chain disruptions, increased 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 about 8.4% after reviews that activist investor Starboard Worth LP took a 6.5% stake within the area registrar.

Nonetheless, journey shares had been decrease Monday as Covid disruptions hit these sectors.

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

Cruise line shares additionally retreated after Covid outbreaks on ships. Royal Caribbean slid 1.3%, Carnival fell almost 1.2%, and Norwegian Cruise Line dipped 2.5%.

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

“Day-after-day it goes up and up. The final weekly common was about 150,000 and it seemingly will go a lot increased,” Fauci mentioned on ABC’s “This Week.”

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

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