(Bloomberg) — U.S. stocks rose in early trading a day after posting another all-time high in the final days of the year. Treasury yields edged lower.
Financials and energy stocks led the S&P 500 higher after the benchmark hit its 70th record close of the year on Wednesday. The Nasdaq 100 was little changed. Biogen Inc. shares fell after Samsung Group denied a Korean media report that the U.S. drugmaker was in talks to sell itself to the company.
The 10-year Treasury yield dropped back toward its 50-day moving average, while yields across most of Europe also dipped after Wednesday’s global sovereign-bond retreat. A dollar gauge was little changed.
As the year draws to a close, investors are contemplating the implications of the fast-spreading omicron coronavirus variant, decreasing stimulus and elevated inflation stoked by supply-chain bottlenecks. Key questions include whether Treasury yields will push higher and how much impetus is left in the equity bull market. Initial unemployment claims unexpectedly fell last week, illustrating still-solid labor demand despite the latest virus wave.
“Despite global surges in Covid cases, the markets are reflecting the new reality that Covid is here to stay albeit more on our terms than its,” Kevin Philip, managing director at Bel Air Investment Advisors, said in an email. Next year, “we are facing less of a Covid-influenced world, and a return toward normalcy,” he said.
The number of Covid-19 cases soared 32% to a record 1.73 million on Wednesday, marking the third day in a row with more than a million new infections worldwide. Cathay Pacific Airways plans to scrap Hong Kong flights as the city tightens quarantine rules for aircrew.
Still, countries including Italy and Australia are dialing back their Covid curbs in an effort to keep essential services running, support their economies and allow people to connect. More evidence is emerging that omicron may be less dangerous, particularly in vaccinated people, as virus deaths in the U.S. declined.
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- The S&P 500 rose 0.2% as of 9:40 a.m. New York time
- The Nasdaq 100 was little changed
- The Dow Jones Industrial Average rose 0.5%
- The Stoxx Europe 600 rose 0.4%
- The MSCI World index rose 0.2%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro fell 0.2% to $1.1324
- The British pound was little changed at $1.3503
- The Japanese yen fell 0.2% to 115.13 per dollar
Bonds
- The yield on 10-year Treasuries declined one basis point to 1.54%
- Germany’s 10-year yield was little changed at -0.19%
- Britain’s 10-year yield declined four basis points to 0.98%
Commodities
- West Texas Intermediate crude rose 0.4% to $76.86 a barrel
- Gold futures fell 0.2% to $1,802.80 an ounce
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