S&P 500 ends lower after four-day rally to record high By Reuters3 min read

"imgCarousel" class="imgCarousel">
© Reuters. FILE PHOTO: A Christmas tree is seen outside of the New York Stock Exchange (NYSE) on the last day of trading before Christmas in Manhattan, New York City, U.S., December 23, 2021. REUTERS/Andrew Kelly

By Echo Wang

(Reuters) -The closed slightly lower after hitting a record intraday high on Tuesday, as a four-day rally lost steam in thin trading and investors weighed Omicron-driven travel disruptions and store closures.

The Centers for Disease Control and Prevention (CDC) on Monday shortened the recommended isolation time for Americans with asymptomatic cases of COVID-19 to five days from the previous guidance of 10 days.

The update follows approvals for new pills and more vaccines to fight COVID-19. It helped investors shrug off concerns over thousands of flight cancellations and Apple Inc (NASDAQ:) shutting its New York stores due to surging cases, and put U.S. stocks on pace for monthly gains.

“This is a holiday-shortened week. So daily movements will likely be exaggerated because of a low relative volume,” said Sam Stovall, chief investment strategist at CFRA Research in New York.

Seven of the 11 major S&P 500 sector indexes rose on Tuesday. Technology and Communications Services led declines.

The rose 95.83 points, or 0.26%, to 36,398.21; the S&P 500 lost 4.84 points, or 0.10%, to 4,786.35 and the dropped 89.54 points, or 0.56%, to 15,781.72.

In company news, Boeing (NYSE:) Co rose 1.46% as Indonesia lifted a ban on its 737 MAX, three years after the crash of one of the aircraft and loss of all 189 people on board.

Markets are in the seasonal Santa Claus rally, with CFRA Research data showing the S&P 500 has on average risen 1.3% in the last five trading days of the year, and first two days of the new year since 1969.

“Investors are digesting the gains from the last three days, … but there are concerns such as how will the Omicron variant affect the market? Would that end up undoing the Santa Claus rally? What about the Fed raising interest rates, could that cause challenges for the year ahead?” Stovall said.

The Federal Reserve signaled earlier this month three quarter-percentage-point interest rate hikes by the end of 2022 as the economy nears full employment and the U.S. central bank copes with an inflation surge. [L1N2SZ1G5]

Volume on U.S. exchanges was 7.55 billion shares, compared with the 11.56 billion average for the full session over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 1.04-to-1 ratio; on Nasdaq, a 1.88-to-1 ratio favored decliners.

The S&P 500 posted 81 new 52-week highs and no new lows; the Nasdaq Composite recorded 105 new highs and 264 new lows.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Get more stuff like this

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.

Leave a Reply

I accept the Privacy Policy

Get more stuff like this
in your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.

Pin It on Pinterest

Share This