Friends
It looks like Santa had plenty of presents in his sleigh for the bulls as stocks rallied nicely on this, the first official day of what is referred to as the Santa Claus rally. Stocks opened higher and remained decisively in positive territory for the entire trading session. Nothing has really changed in the past week. The Fed is still turning hawkish, supply chains and inflation remain a problem (though retailers seem to have had a very good Christmas season regardless), and Omicron continues to spread. The narrative that Omicron is less lethal and therefore less to concern ourselves with appears to be helping. Perhaps the market is back to simply climbing a wall of worry.
Anyway, for the day the Dow Jones Industrial Average was up 351 points to close at 36,302. The S&P 500 was up 65 points to finish the day at 4,791. The Nasdaq Composite Index was up 217 points to close at 15,871. Gold was up $1 to trade at $1,812 per ounce, while oil was up $1.91 to trade at $75.70 per barrel WTI.
As mentioned things have certainly changed course in a week’s time. Sentiment was very negative just a week ago today. But since, we have seen a near FOMO (fear of missing out) kind of move develop. Let’s see if the Santa Claus rally continues as the last trading week of the year unfolds.
Have a nice evening everyone.
