Sunday, October 2

Wall Street continues with the Christmas rally and all the indices rise

The increase in inflation and the expansion of the Omicron variant does not seem to be having great relevance among investors, who after the Christmas holidays are still optimistic and are betting on purchases on the US stock market.

Yesterday’s session ended with all the indicators in green and setting new records. For its part, the S&P 500 hit a new record after gaining 1.38% or 65.40 integers, up to 4,791.19 points, thus marking his 69th record so far this year, with another record also in his interday record, the first in more than a month. As for the Dow Jones, the index added 0.98% or 351.82 points, to 36,302.38 units. The market’s technology index, the Nasdaq, rose 1.4% or 217.89 points to close at 15,871.26 points.

At the sectoral level, the good performance of the technology sector, driven by the strength shown by semiconductor companies, while the utilities sector was the worst performer during the session in both regions. In addition, energy sector stocks ended the day with strong gains following the upward turn in the price of oil during the session.

Likewise, the S&P 500 has risen 27.6% during the year and the Nasdaq 23.1%. The Dow Jones is the furthest behind with an increase of 18.6%.

Stocks fell in late November, in part due to the rise in the Covid-19 omicron variant, but have since rallied as governments have largely avoided reinstating strict social distancing measures.

Regarding the macroeconomic data, the last week of the year is quiet and today the October reading of the housing price index stands out. In addition, the Chicago PMI will be released on Thursday, which includes both the manufacturing sector and the service sectors.

The price of housing in the United States registered an annual increase of 19.1% last October, compared to a rise of 19.7% the previous month, according to the S&P CoreLogic Case-Shiller index.

The Federal Reserve’s underlying personal consumption expenditure (PCE) index rose 0.6% in November from the previous month. The basic PCE rose 4.7% year-on-year in November, above the expected rate of 4.5%. In the case of the data for the ten largest US cities, the rise in prices in October slowed to 17.1% per year from 17.9% the previous month, while the rise for the twenty largest cities was 18, 4%, compared to 19.1% in September.

At the moment, the sector most affected by the covid crisis is being the airlines, which canceled more than a thousand flights yesterday, the fourth consecutive day of cancellations caused by the advance of the omicron variant.

On the other hand, the price of a barrel Brent, a reference for the Old Continent, stood at a price of 79.65 dollars, after rising 1.36%, while Texas stood at 76.76 dollars, after advancing 1.57%.

The price of the euro against the dollar stood at 1.1327 ‘greenbacks’, while the Spanish risk premium stood at 75 basis points, with the interest required for the ten-year bond at 0.521%.

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