Modest advances extend stocks’ rebound to third day
Major stock indexes weathered a bout of choppy trading on Wall Street on Wednesday and closed higher for the third day in a row.
The Standard & Poor’s 500 rose 0.3%, with 62% of the stocks within the benchmark index closing higher. The muted trading followed a strong start to the week that included the index’s biggest gain since March. With the latest gain, the S&P 500 has now recovered all of its losses from its twoweek skid heading into this week.
The Dow Jones industrial average bounced back from an early drop to eke out a 0.1% gain, and the Nasdaq composite rose 0.6%.
Markets had slipped the previous two weeks over several concerns, including rising inflation, the newest coronavirus variant and how both issues could affect economic growth. Stocks steadied this week after comments from Dr. Anthony Fauci, the White House’s chief medical advisor, who on Monday said early indications suggested that the Omicron variant may be less dangerous than Delta.
“The generally more confident tone is a function of Omicron news,” said Liz
Ann Sonders, chief investment strategist at Charles Schwab. “Regardless of what’s happening, it’s still amazing to see all the flipflopping happening at the sector level.”
The choppiness in the market will probably persist through December, she said.
The S&P 500 rose 14.46 points to 4,701.21 and is now up 25.2% for the year. The Dow advanced 35.32 points to 35,754.75. The blue-chip index swung between a loss of 116 points and a gain of 121.
The tech-heavy Nasdaq had also been down in the early going before bouncing back to gain 100.07 points and end at 15,786.99.
Smaller-company stocks outpaced the rest of the market. The Russell 2000 rose 17.92 points, or 0.8%, to 2,271.71.
A wide range of travel-related companies gained ground in a sign that investors are confident that the industry will continue its recovery despite the threat from the Omicron variant.
Norwegian Cruise Line jumped 8.2% for the biggest gain in the S&P 500, and rivals Carnival rose 5.5% and Royal Caribbean gained 5.2%. United Airlines rose 4.2% and Las Vegas Sands added 4.4%.
Technology companies accounted for a big slice of the S&P 500’s gains, though Apple’s 2.3% rise did a lot of the heavy lifting as its weighting gives it a large influence on the sector. Other big tech companies fell, including chipmaker Nvidia, which dropped 1.9%, and Intel, which closed 1.6% lower.
Communications and healthcare stocks made solid gains. Facebook parent Meta Platforms rose 2.4% and Twitter added 2.8%. UnitedHealth Group closed up 0.9%.
Financial stocks were the biggest laggards. JPMorgan Chase fell 1.1% and Bank of America slid 1.2%.
Energy futures rose. The price of U.S. crude oil gained 0.4%, though energy stocks were mixed.
Bond yields rose. The yield on the 10-year Treasury rose to 1.52% from 1.48% late Tuesday.
Markets in Asia were mostly higher, and those in Europe fell. Germany’s DAX shed 0.8% as Germany’s parliament elected Olaf Scholz as the country’s ninth postWorld War II chancellor.
Investors could get more insight into how the economy is faring later this week and next week. On Friday, the Labor Department will give an update on how rising prices are affecting consumers with the release of its consumer price index for November.
Federal Reserve policymakers are scheduled to hold a meeting next week that could offer an update on the central bank’s plans to tackle inflation. The Fed has said it plans to speed up the pace at which it trims its bond purchases, which has raised concerns that the Fed will raise its benchmark interest rates next year sooner than expected.