As traders weighed the risks posed by the Omicron virus, the major U.S. stock indexes experienced divergent trends after opening flat. On Tuesday (28th) before the deadline, the Dow Jones Industrial Average rose more than a hundred points or 0.3%, the Nasdaq Composite Index fluctuated flat, the S&P 500 index rose 0.1%, opening a new high for the second consecutive day, and the Philadelphia Semiconductor Index fell. 0.3%.
CFRA research data shows that since 1969, the S&P 500 index has experienced an average increase of 1.3% in the last five trading days and two days before the new year. Recently, as investors’ concerns about Omicron have eased slightly, risk sentiment has also recovered, and the market ushered in this year’s Christmas market on Monday.
However, due to the spread of Omicron virus, the global single-day confirmed cases soared to a record high on Monday (27th). However, recent studies have shown that although Omicron is highly contagious, the risk of severe illness is still very low, and although the number of confirmed cases worldwide has surged , Omicron’s average death toll has not increased significantly.
Large technology stocks were mixed. Before the deadline, Tesla (TSLA-US) rose more than 1%, Amazon (AMZN-US) rose 0.4%, and Microsoft (MSFT-US) and Apple both fell 0.1%.
As of 22 o’clock on Tuesday (28th) Taipei time:
- The Dow Jones Industrial Average rose 112.85 points, or 0.31%, temporarily at 36415.23
- The Nasdaq Composite Index rose 4.14 points, or 0.03%, to 15875.51 points temporarily
- The S&P 500 Index rose 6.66 points, or 0.14%, to 4,797.85 points temporarily
- Fees and a half fell 11.16 points or -0.28%, temporarily at 4,029.00 points
- TSMC ADR rose 0.43% to $123.24 per share
- The 10-year U.S. Treasury yield fell to 1.457%
- New York light crude oil rose 0.86% to US$76.22 per barrel
- Brent crude oil rose 0.59% to $79.06 per barrel
- Gold rose 0.27% to US$1813.60 per ounce
- The dollar index rose to 96.095
Spotlight stocks:
Tesla (TSLA-US) rose 1.41% in early trading to $1109.36.
Investment bank Wedbush raised Tesla’s target price, optimistic that as the supply chain bottleneck gradually eases, strong market demand in China will drive Tesla’s share price to continue to rise, and the room for growth next year is expected to be close to 30%.
Apple (AAPL-US) fell 0.3% in early trading to $179.77.
Due to the spread of Omicron virus infection, Apple announced that its 12 physical stores in New York City will suspend business and prohibit consumers from entering, but it still provides online order to store pickup services.
Vipshop (VIPS-US) fell 3.28% to 7.97 US dollars in early trading.
Vipshop, a Chinese e-commerce company, revised its revenue outlook for the fourth quarter of 2021 on Monday, but did not specify the reason for the revision. It only stated that this action was based on its latest view of the current market and company’s operating conditions.
Today’s key economic data:
- The monthly growth rate of the FHFA house price index in the United States in October reported 1.1%, which is expected to be 0.9%, and the previous value is 0.9%
- The annual growth rate of the FHFA house price index in the United States in October reported 17.4%, the previous value was 17.7%
- The annual growth rate of the U.S. S&P Case-Shiller 20 house price index for major cities in October reported 18.4%, which is expected to be 18.5%, and the previous value is 19.1%
- The monthly growth rate of the S&P Case-Shiller 20 major city house price index in the United States in October reported 0.8%, up from the previous value of 0.8%
Wall Street analysis:
Sandip Bhagat, Chief Investment Officer of Whittier Trust, said that the remedy for the recession triggered by the epidemic is very important. We have obtained large-scale stimulus measures, which will leave a follow-up policy response for a long time in the future, and the stock market will continue to rise.
According to Antonio Cavarero, head of investment at Generali Insurance Asset Management, the market is radiating the belief that Omicron will not interfere with economic recovery, and there is no significant risk reduction behavior. However, this part may be related to the current holiday. Fewer people work and reduce market liquidity. .
