Wall Street is growing optimistically until 2022


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U.S. stock indexes on Monday sought to prolong the market’s recovery from the pandemic shock into the new year, driven by a rise in Tesla’s heavyweight category after the electric car maker released delivery data.

Tesla rose 10.4% after the company’s quarterly shipments exceeded Wall Street estimates, compensating for global chip shortages as it increased production in China.

Shares gave the biggest boost to the S&P 500 and Nasdaq, followed by Apple and Nvidia. Apple shares, which went up to $ 181.61, ended at $ 182.86 needed to become the first company with a market capitalization of $ 3 trillion.

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The banking index added 3.1% as bank shares followed a jump in U.S. Treasury yields due to expectations of a series of U.S. interest rate hikes this year.

Wells Fargo shares were further strengthened by Barclays’ report on its upgrade to “overweight”.

Another economically sensitive sector, energy, strengthened 2.5%, the most among the major indices of the S&P sector, as crude oil prices rose due to limited supply and hope for a further recovery in demand in 2022.

“It looks like the store is reopening in full force this morning and it basically says the market is looking through Omicron … it’s something we can live with, like the seasonal flu,” said Thomas Hayes, executive member of Great Hill Capital Llc in New York.

The U.S. Food and Drug Administration has approved the third dose of Pfizer and BioNTech vaccine against COVID-19 for children between 12 and 15 years of age. Pfizer shares, however, fell 3%, pulling the health care index by 1.7%. BioNTech weakened 7%.

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At 11:45 ET, the Dow Jones Industrial Average rose 13.38 points, or 0.04%, to 36,351.68, the S&P 500 rose 5.01 points, or 0.11%, to 4,771.19, and the Nasdaq Composite rose 751 or 0.05 points. %, to 15,740.72.

All major Wall Street indices ended 2021 with monthly, quarterly and annual increases, recording the largest three-year progress since 1999.

The reference S&P 500 added 27% in 2021 and reported 70 record-breaking closures, the second in a row, in a turbulent year affected by new variants of COVID-19 and a shortage in the supply chain.

The Dow added 18.7% for the year and the tech-rich Nasdaq gained 21.4%.

“A lot of liquidity and low interest rates are support factors that will change in a few months when the Fed raises rates sometime in June,” said Randy Frederick, vice president of trade and derivatives at Charles Schwab.

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“But there is still huge capital on the side that needs to be invested, and as long as that is true, the markets will remain bigger.”

Shares of AT&T and Verizon Communications rose 3% and 0.7%, respectively, after their executives rejected a request to postpone a planned launch of a new 5G wireless service on Jan. 5 over concerns about aviation safety.

Advanced releases outperformed the declines by a ratio of 1.14 to 1 on the NYSE and by a ratio of 1.85 to 1 on the Nasdaq.

The S&P index recorded 17 new 52-week highs and no new declines, while the Nasdaq recorded 74 new highs and 50 new lows.

(Reporting by Bansari Mayur Kamdar, Shashank Nayar and Medha Singh in Bengaluru; editing by Maja Samuel)

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