New York stocks fell a day before the last trading day.
While trading was sluggish due to the year-end market, the Dow Jones Industrial Average and the Standard & Poor’s 500 Index reached new highs the previous day, but turned downwards.
The spread of Omicron, a novel coronavirus infection (COVID-19) mutant virus, continued.
On the 30th (Eastern time) on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 36,398.08, down 90.55 points (0.25%) from the previous day.
The Standard & Poor’s (S&P) 500 index closed at 4,778.73, down 14.33 points (0.30%) from the battlefield, and the Nasdaq, centered on technology stocks, closed at 15,741.56, down 24.65 points (0.16%) from the battlefield.
After the Dow and the S&P 500 hit all-time highs on the previous day, the stock index rose additionally in the early morning of the day, raising its highs, but turning to a downward trend.
Investors paid attention to Omicron trends and economic indicators, as there were few variables that could lead the market at the end of the year.
After entering the last week of the year, the stock index broke an all-time high the previous day, raising expectations that the Santa Rally would continue into the new year.
Santa Rally refers to the trend of stock prices rising from the Christmas holiday to the second trading day of the year.
However, as trading was sluggish, and some profit taking and portfolio adjustments appeared, the stock index did not gain strength.
The number of confirmed COVID-19 cases, including Omicron in the United States, continued to rise.
According to the New York Times (NYT) on the 29th, the average number of new cases per day for 7 days increased sharply to 301,472. This is a 153% increase from two weeks ago.
However, compared to two weeks ago, the hospitalization rate increased by 11% and the mortality rate decreased by 7%.
Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases (NIAID), said in an interview with CNBC the day before, “It is difficult to say, but given the size of the country and the vaccination situation, the spread of omicron mutations in the United States is likely to continue until the end of January next year.” .
Centers for Disease Control and Prevention (CDC) Director Rochelle Wallensky said on CNN the previous day that a booster shot for the COVID-19 vaccine could be approved for children aged 12 to 15 years.
Some predict that Omicron could slow the pace of U.S. gross domestic product (GDP) growth in the first quarter of next year.
Moody’s Analytics has downgraded its forecast for U.S. GDP growth in the first quarter of next year to about 2% from about 5% due to the spread of Omicron.
U.S. brokerage firm Jeffreys also lowered its first-quarter GDP growth forecast to 1.5% after raising it to 6.6%.
The economic indicators were the weekly number of new jobless claims and the Chicago Buyer Managers’ Index (PMI) for December.
The number of claims for unemployment insurance for the week ending on the 25th was 198,000, down 8,000 from the previous week on a seasonally adjusted basis.
Unemployment insurance claims were nearing their bottom again in the week ending December 4, after hitting 184,000, the lowest level since 1969.
This is lower than the 205,000 expected by experts compiled by the Wall Street Journal (WSJ).
The number of claims for unemployment insurance for the week ended on the 18th was revised upward from 205,000 to 206,000.
According to the Institute for Supply Management (ISM)-Chicago Federal Reserve Bank, the Chicago Purchasing Managers’ Index (PMI) for December was 63.1, up from 61.8 in the previous month.
This is higher than the analyst’s estimate of 62.0 compiled by the WSJ.
The yield on the 10-year U.S. Treasury bond fell to 1.51% along with the favorable economic indicators, but the stock index did not gain much momentum.
By industry, stocks related to energy, finance, industry, materials and technology declined, while stocks related to health, real estate, telecommunications and utilities rose.
By stock, the stock price of Biogen, which surged on the previous day’s rumors of a Samsung takeover, fell by 7% as Samsung Biologics made an announcement denying the content.
Tesla (TSLA) shares fell more than 1% after it was announced that it would recall nearly 500,000 vehicles.
Aviation-related stocks showed an upward trend at the beginning of the market despite the spread of Omicron, but the rise was sluggish.
Shares of JetBlue Airways, which canceled a large number of flights through mid-January in preparation for the aftermath of Omicron, fell 0.97%, while Delta Air Lines fell 0.31%.
Didi Global, which is known to be about to be delisted after listing on the New York Stock Exchange, fell pre-open as the first earnings announced by Didi Chuxing were sluggish, but rose more than 5% during the day.
Shares of cruise-related stocks, Royal Caribbean and Norwegian Cruises, fell more than 1% as the CDC recommends avoiding cruise travel, whether or not vaccinated.
Stock market experts diagnosed that the year-end market is continuing with a low trading volume, although the stock index is showing an upward trend.
“In terms of stocks, it’s going to keep going higher,” said Des Lawrence, senior investment strategist at State Street Global Advisors.
According to the Chicago Mercantile Exchange (CME) FedWatch, the Federal Funds (FF) interest rate futures market saw a 56.5% chance of a Fed rate hike in March next year.
The probability of a rate hike in May next year is expected to be 71.0%.
At the Chicago Board Options Exchange (CBOE), the volatility index (VIX) recorded 17.33, up 0.38 points (2.24%) from the battlefield.
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