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FinanceStock futures are flat after Dow, S&P 500 close at record

Stock futures are flat after Dow, S&P 500 close at record

U.S. inventory index futures have been little modified throughout in a single day buying and selling Wednesday after the S&P 500 and Dow Jones Industrial Average closed at new data.

Futures contracts tied to the Dow Jones Industrial Average inched greater, whereas S&P 500 futures have been unchanged. Nasdaq 100 futures have been barely decrease.

During common buying and selling on Wednesday the S&P 500 superior 0.14% to its seventieth record close of the yr. This is the second highest variety of record closes for the benchmark index throughout a calendar yr, trailing simply 1995’s 77 record closing highs.

The Dow rose 90 factors, or 0.25%, to additionally close at a record — its first since November. The 30-stock benchmark noticed its sixth straight constructive session. The Nasdaq Composite, nevertheless, declined 0.1%. Chip shares got here underneath stress, with AMD, Xilinx and Nvidia all declining at least 1%.

Travel-related shares additionally slid amid ongoing Covid-19 issues, with the NYSE Arca Airline Index dipping 2.5%.

On the flip facet, plenty of shopper shares rose to new all-time highs through the session, together with Domino’s Pizza, McDonald’s, Yum Brands, Costco and Procter & Gamble.

All three main averages are within the inexperienced for December. The S&P and Dow are on tempo for a second constructive month within the final three, whereas the Nasdaq Composite is on monitor for a 3rd straight month of positive factors.

Wednesday’s upward motion for the Dow and S&P continued a traditionally sturdy interval for shares, which has been dubbed the “Santa Claus rally.” The S&P 500 has notched a acquire through the interval — the final 5 buying and selling days of the yr adopted by the primary two session in January — 78.5% of the time since 1928, in keeping with Bank of America.

“Santa has been good to investors this holiday season, and we look for another year of positive returns in 2022,” mentioned Scott Wren, senior international market strategist at Wells Fargo Investment Institute.

With simply two buying and selling days left in 2021, the most important averages are additionally on monitor to finish the yr within the inexperienced. The S&P and Dow are up 27.6% and 19.2%, respectively. The Nasdaq’s gained 22.3%, whereas the Russell 2000 is up 13.9%.

“2021 was a terrific year for the equity markets,” mentioned Anu Gaggar, international funding strategist for Commonwealth Financial Network. “Between federal stimulus keeping the economy going, easy monetary policy from the Fed keeping markets liquid and interest rates low, and the ongoing medical improvement leading to surprising growth, markets have been in the best of all possible worlds,” she added.

Looking ahead, Gaggar mentioned 2022’s efficiency is determined by earnings and inventory valuations.

Treasury yields creeping greater may show to be a headwind for 2022, particularly amongst growth-oriented areas of the market. The yield on the U.S. 10-year Treasury broke above 1.5% on Wednesday.

“We expect interest rates to move modestly higher in 2022 based on near-term inflation expectations above historical trends and improving growth expectations once the impact of COVID-19 variants recede,” mentioned Lawrence Gillum, fastened earnings strategist for LPL Financial. “Our year-end 2022 forecast for the 10-year Treasury yield is 1.75–2.00%.”

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