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05.01.2022 01:27 PM
The US stock market reported new highs

At the auction on Tuesday, the Dow Jones Industrial Average reported its second record closing high since the beginning of the year. Despite this, the decline in the quotes of securities of companies in the technology sector significantly put pressure on the market, which instantly reflected on the S&P 500 and Nasdaq Composite indices. At the same time, the shares of companies sensitive to the state of the economy in the energy, financial, and manufacturing sectors grew steadily.

Thus, the S&P 500 stock index sank 0.1% to 4793.54 points, the Dow Jones soared 0.6% to 36799.65 points, and the Nasdaq Composite fell 1.3% to 15622.72 points.

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As a result, on the NYSE stock exchange, the number of securities that increased in value (1782) exceeded the number of those that lost in value (1506). At the same time, the indicators of 89 shares remained unchanged. At the same time, on the NASDAQ stock exchange, the securities of 2,263 companies lost value, 1,530 grew, and the indicators of 160 shares remained almost unchanged.

The day before, investors focused on data on production and employment in the United States, as well as the yield level of long-term US government bonds, which increased from 1.628% to 1.666%.

According to the results of a survey of companies in the manufacturing sector of the United States, the situation with supply disruptions can improve. Another report published the day before indicates that the number of US residents quitting in November broke a new high. At the same time, the number of vacancies remained near record levels.

The tense situation with the new omicron strain COVID-19 does not lose its relevance for the participants of the American stock market. According to the information provided by Johns Hopkins University on the eve, the number of infections in the States has reached a record, and the number of hospitalizations is permanently increasing, but still far from the previous maximum levels.

At the same time, there are more and more statistics in the American media that the Omicron strain is characterized by a mild course of the disease. These data inspire investors with hope for the approaching end of the pandemic and the decreasing threat of lockdowns and quarantine measures. In this regard, traders' expectations regarding the corporate profits of global giants are also significantly increasing.

By the way, next week all investors' attention will be focused on the next reporting season of large financial companies. According to preliminary scenarios of analysts, in the 4th quarter, corporate profits in the S&P 500 index increased by 22% compared to the same period last year.

Meanwhile, the oil market grew steadily against the background of the agreement of OPEC members on increasing black gold production. The alliance made this decision in the hope that the global increase in the incidence of coronavirus will not provoke pressure on demand. As a result, the cost of a barrel of Brent oil increased by 1.3% to $80.19, and a barrel of WTI - by 1.46% to $77.19.

As for other commodities, February gold futures rose 0.82% to $1,814.90 per ounce.

The pan-European Stoxx Europe 600 index gained 0.8%, breaking a record closing level, and the Cboe Volatility Index lost 1.80% to reach 16.91.

The main pair of the Forex market (EUR/USD) remained almost unchanged, and the indicators of USD/JPY decreased by 0.01% to the level of 116.12.

Following the results of Tuesday's trading session, most of the stock exchange indicators of the Asia-Pacific region (APR) were reported multidirectional.

Thus, the Chinese Shanghai Composite index sank by 0.2% against the background of data that in December China's exports remained virtually unchanged due to low demand abroad. Meanwhile, Hong Kong's Hang Seng rose 0.1% and Japan's Nikkei 225 rose 1.8%.

Irina Maksimova,
Analytical expert of InstaForex
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