Stocks on Wall Street Rise for the Second Day in a Row and the S&P 500 Hit a New High
Investors have bet this week that the economy can overcome the latest wave of coronavirus cases and take advantage of the momentum of 2021
US stocks rose on Tuesday after the Dow Jones Index and S&P 500 posted new record closes on Monday on the first trading day of 2022.
The Dow Jones rose 200 points, or about 0.5%, to hit an intraday record. The S&P 500 also hit an intraday record at 0.3%. The Nasdaq Composite, on the other hand, is trading lower.
Investors have bet this week that the economy can overcome the latest wave of coronavirus cases and take advantage of the momentum of what was a stellar 2021 for the markets.
Halliburton shares rose 2.1% on rising oil prices and Morgan Stanley upgraded the oil services company.
On the other hand, cruise operators continued their rebound, with Carnival, Norwegian Cruise, and Royal Caribbean shares growing by around 1%. Casino and airline stocks also rose. Wynn added 2% and Las Vegas Sands was up about 1%. United, Delta, and American gained about 1% as part of the business reopening.
Apple also grew 0.4% a day after the company briefly became the first to reach a market capitalization of $ 3 trillion.
On Monday, global stock markets started 2022 with optimism, with a rise in the stock markets of the United States and Europe, along with the rise in oil prices and the yield of US Treasuries.
Unofficially, the Dow Jones Industrial Average rose 246.83 points, or 0.68%, to 36,585.13 units, while the S&P 500 added 30.41 points, or 0.64%, to 4,796.59 units. The Nasdaq Composite added 187.83 points, or 1.2%, to 15,832.80 points.
The S&P surged nearly 28% last year, propelling the MSCI World Stock Index to its third straight year of double-digit gains.
“The response of central banks – especially the Fed – to inflation will be the key story for 2022,” strategists at the BlackRock Investment Institute wrote in a note on Monday. “We view the higher inflation regime and strong growth as positive for risky assets, but bad for bonds for the second year in a row,” they added.
“Infection rates are rising worldwide, restrictions are being approved in several countries, the air travel sector, among others, is suffering, but despite all the optimism of investors is palpable, ” said Tamas Varga, from the oil brokerage PVM.