Wall St rises on rosy economic data, encouraging Omicron update
A trader in a face mask works on the trading floor at the New York Stock Exchange (NYSE) as the Omicron coronavirus variant continues to spread in Manhattan, New York City, U.S., December 20, 2021. REUTERS/Andrew Kelly Purchase Licensing Rights
Dec 22 (Reuters) - Wall Street's main indexes climbed on Wednesday in a broad rally after upbeat economic data and hopeful developments about the severity of the Omicron coronavirus variant that is sweeping the world.
Stocks gained for a second straight session as volatility has ratcheted up in the last month of 2021 following the arrival of Omicron and an otherwise strong year for equities.
A South African study suggested reduced risks of hospitalization and severe disease in people infected with the Omicron variant versus the Delta one, but World Health Organization officials cautioned that it was too soon to draw firm conclusions. read more
“We are still struggling for direction in the face of the Omicron outbreak, but in the past few days ... more and more evidence is building that the strain is potentially less severe than prior strains, specifically Delta, which bodes well for economic momentum in 2022,” said Mike Stritch, chief investment officer at BMO Wealth Management.
According to preliminary data, the S&P 500 (.SPX) gained 47.50 points, or 1.02%, to end at 4,696.73 points, while the Nasdaq Composite (.IXIC) gained 180.81 points, or 1.18%, to 15,521.89. The Dow Jones Industrial Average (.DJI) rose 262.58 points, or 0.74%, to 35,755.28.
Tesla Inc (TSLA.O) shares rose, boosting the S&P 500 and Nasdaq. Tesla Chief Executive Elon Musk said in an interview he has sold "enough stock" following several weeks of share sales by the billionaire. read more
U.S. consumer confidence improved further in December, suggesting the economy would continue to expand in 2022. The survey from the Conference Board showed more consumers planned to buy a house and big-ticket items such as motor vehicles and major household appliances as well as go on vacation over the next six months. read more
Other reports showed U.S. home sales increased for a third straight month in November, and that gross domestic product increased at a 2.3% annualized rate in the July-September quarter, revised up from the 2.1% rate estimated last month. read more
In another encouraging development against the pandemic, the U.S. authorized Pfizer Inc's (PFE.N) oral antiviral COVID-19 pill for at-risk people aged 12 and above, making it the first at-home treatment for the coronavirus. read more
The benchmark S&P 500 is now up about 24.5% so far in 2021.
Sign up here.
Reporting by Lewis Krauskopf in New York, Shreyashi Sanyal, Anisha Sircar and Medha Singh in Bengaluru Editing by Maju Samuel and Matthew Lewis
Our Standards: The Thomson Reuters Trust Principles.
Read Next
- U.S. MarketsFed to cut rates in September, say nearly two-thirds of economists
The U.S. Federal Reserve will cut its key interest rate twice this year, starting in September, according to a stronger majority of economists polled by Reuters who broadly raised their inflation forecasts for a second consecutive month.
