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Before Christmas, the US stock markets rose three days in a row and the S&P 500 index reached a new high. After being closed on Christmas Eve, the leading stock exchange indices opened up on Monday, and at the end of the stock exchange at 22:00 Norwegian time, it looked like this:
- The broad S&P 500 index rose 1.4 percent.
- Industrial-heavy Dow Jones rose 1 percent.
- The Nasdaq Composite Technology Index rose 1.4 percent.
Thus, the US stock markets followed the positive development in Europe. At home, the Oslo Stock Exchange rose 0.4 percent before closing. according to CNBC For example, the leading S&P 500 index has historically risen in the last five trading days of the year and the first two days of the new year.
With only a few trading days left of 2021, the US stock market is leaving a strong year behind. The S&P 500 index, which consists of 500 of the largest listed companies in the US, has risen over 27 percent so far this year, and today marked a new top listing of 4,791.19 points.
Downturn for tourism stocks
The omikron variant led to stock market turmoil following fears of new closures earlier in December. Daily omicron cases in the USA have now surpassed the delta variant, and in New York the infection rates are at a record high.
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Lack of crew due to omikron led to around 6,000 canceled flights globally over the Christmas weekend, with the United States accounting for as many as 2,800 of them, according to Bloomberg. United Airlines and American Airlines both fall over three percent. Following outbreaks on several ships, the shares of cruise ship operators are also falling. The Norwegian Cruise Line share and the Royal Caribbean Cruises share fall 2.5 and 1.3 percent, respectively.
According to the American infection control expert Dr. Anthony Fauci, the infection will probably still increase rapidly, as omicron continues to spread all over the world, writes CNBC.
“The market will probably allow a few weeks to go by to see if the infection rates fall as they have in South Africa,” Michael O’Rourke, marketing strategist at JonesTrading Institutional Services, told Bloomberg. If infection rates remain high, investors can be expected to “express further concern”, he adds.
Strategists at JPMorgan Chase & Co say there is no reason to fear that the rise in US equities will soon end, according to Bloomberg.
Inflationary measures
The US Federal Reserve (Fed) decided in mid-December to increase the reduction in monthly support purchases from 15 to 30 billion dollars, which means that it will finish the reduction in March.
It provides room for maneuver to raise the key policy rate faster. The Fed announced three interest rate hikes next year to overcome galloping inflation. The consumer price index (CPI) in the US rose 6.8 percent on an annual basis in November, which is the highest figure in almost 40 years. (Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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