(Bloomberg) — U.S. stocks fluctuated on Wednesday as investors assessed the economic implications of the omicron coronavirus outbreak. Treasury yields rose across the board.
Declines in big-tech shares, including Nvidia Corp. and Meta Platforms Inc., countered gains in materials and consumer stocks, leaving the S&P 500 little changed in thin trading. The Nasdaq 100 slid 0.2%, underperforming major benchmarks. Tesla Inc. fell after Chief Executive Elon Musk sold a further $1.02 billion of shares. The yield on 10-year Treasuries climbed to 1.55%, the highest since November, while the dollar dropped.
Omicron fears are easing on growing evidence that the fast-spreading strain leads to milder symptoms, even as worldwide Covid-19 cases rose above 1 million for a second straight day. Coronavirus developments along with Federal Reserve policy tightening and China’s outlook rank among the key risks for 2022.
Read more: S&P Will Top 5,000 Before Correction Hits in 2022, Paulsen Says
“We just might get a relatively calm last week of the year after all,” Matt Maley, chief market strategist for Miller Tabak + Co. wrote. “That said, thin markets can change on a dime, so investors will want to stay nimble over the next three days.”
The 10-year Treasury yield rose as much as 7.4 basis points to 1.55%, testing the 50-day moving average that has contained it since Nov. 29. The dollar fell against all of its Group-of-10 peers except the yen. Bitcoin stayed below $48,000 after a tumble that hinted at diminished ardor for the most speculative assets.
“We’re sober about potential headwinds that still could be coming, even the rest of this year, but early in 2022 — the Fed is going to be raising rates, that will change things for the markets,” Ann Miletti, head of active equity at Allspring Global Investments, said on Bloomberg Television. “We are also hopeful because as you look at a lot of the economic data, it remains strong.”
What to watch this week:
- U.S. initial jobless claims, Thursday
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- The S&P 500 was little changed as of 1:20 p.m. New York time
- The Nasdaq 100 fell 0.2%
- The Dow Jones Industrial Average rose 0.2%
- The MSCI World index was little changed
Currencies
- The Bloomberg Dollar Spot Index fell 0.2%
- The euro rose 0.3% to $1.1339
- The British pound rose 0.4% to $1.3484
- The Japanese yen fell 0.1% to 114.96 per dollar
Bonds
- The yield on 10-year Treasuries advanced seven basis points to 1.55%
- Germany’s 10-year yield advanced five basis points to -0.18%
- Britain’s 10-year yield advanced nine basis points to 1.01%
Commodities
- West Texas Intermediate crude rose 0.7% to $76.49 a barrel
- Gold futures fell 0.3% to $1,804.60 an ounce
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