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U.S. stocks closed higher on Monday for the fourth consecutive session on higher holiday retail sales and a rally in tech and energy stocks. Also, investors reassessed Omicron fears. All the three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 1% or 351.82 points to end at 36,302.38 points, recording its fourth-highest close ever.
The S&P 500 gained 1.4% or 65.40 points to finish at 4,791.19 points, hitting a new record high. This was the index’s 69th record close of the year. The index also set an intraday record of 4,791.49 points in more than a month.
Energy and tech stocks were the best performers. The Energy Select Sector SPDR (XLE) and Technology Select Sector SPDR (XLK) each gained 2.2%. All the 11 sectors of the benchmark index ended in positive territory.
The fear-gauge CBOE Volatility Index (VIX) was down 1.56% to 17.68. A total of 7.76 billion shares were traded on Monday, lower than the last 20-session average of 11.74 billion. Advancers outnumbered decliners on the NYSE by a 2.29-to-1 ratio. On Nasdaq, a 1.09-to-1 ratio favored advancing issues.
Investors Regaining Confidence
Stocks rallied for the fourth straight day on Monday as investors felt optimistic that the Omicron variant of the coronavirus won’t affect the global economy. The optimism persisted despite hundreds of flights getting cancelled amid surging travel over the Christmas weekend and Dr. Anthony Fauci urging people to cut down or postpone New Year celebration plans.
However, Monday’s rally was primarily driven by solid retail data. Data from Mastercard SpendingPulse showed that holiday sales rose year 8.5% year over year. This is the biggest annual gain in 17 years. This sent stocks on a rally, with tech and energy stocks gaining the most.
This week, trading is expected to be in lower volumes than normal, as investors will be trying to take an extended break. Also, investors will be watching for the start of the Santa Claus rally, a typical bullish period during the last five days of the year.
No major economic data was released on Monday.
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Stock Market News for Dec 28, 2021
U.S. stocks closed higher on Monday for the fourth consecutive session on higher holiday retail sales and a rally in tech and energy stocks. Also, investors reassessed Omicron fears. All the three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 1% or 351.82 points to end at 36,302.38 points, recording its fourth-highest close ever.
The S&P 500 gained 1.4% or 65.40 points to finish at 4,791.19 points, hitting a new record high. This was the index’s 69th record close of the year. The index also set an intraday record of 4,791.49 points in more than a month.
Energy and tech stocks were the best performers. The Energy Select Sector SPDR (XLE) and Technology Select Sector SPDR (XLK) each gained 2.2%. All the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq gained 1.4% or 217.89 points to finish at 15,871.26 points. Shares of Tesla, Inc. (TSLA - Free Report) gained 2.2%, while Apple, Inc. (AAPL - Free Report) added 2.3%. Tesla has a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The fear-gauge CBOE Volatility Index (VIX) was down 1.56% to 17.68. A total of 7.76 billion shares were traded on Monday, lower than the last 20-session average of 11.74 billion. Advancers outnumbered decliners on the NYSE by a 2.29-to-1 ratio. On Nasdaq, a 1.09-to-1 ratio favored advancing issues.
Investors Regaining Confidence
Stocks rallied for the fourth straight day on Monday as investors felt optimistic that the Omicron variant of the coronavirus won’t affect the global economy. The optimism persisted despite hundreds of flights getting cancelled amid surging travel over the Christmas weekend and Dr. Anthony Fauci urging people to cut down or postpone New Year celebration plans.
However, Monday’s rally was primarily driven by solid retail data. Data from Mastercard SpendingPulse showed that holiday sales rose year 8.5% year over year. This is the biggest annual gain in 17 years. This sent stocks on a rally, with tech and energy stocks gaining the most.
This week, trading is expected to be in lower volumes than normal, as investors will be trying to take an extended break. Also, investors will be watching for the start of the Santa Claus rally, a typical bullish period during the last five days of the year.
No major economic data was released on Monday.