U.S. stocks rose on Monday as markets reopened after the Christmas holiday and investors analyzed the spread of Covid’s new variant.
The S&P 500 advanced nearly 1.4% to 4,791.19, marking its 69th record close of the year. The index also reached an intraday record for the first time in more than a month. The Dow Jones Industrial Average gained 351.82 points or roughly 1% to close at 36,302.38. The Nasdaq Composite added about 1.4% to 15,871.26.
Still, market strategists remained positive on the overall equity amid a surge in Covid cases. New studies showed that the omicron variant of Covid-19 has a lower risk of hospitalization than other Covid variants.
Stocks and important factors
Investors are looking for a Santa Claus rally to close out a year in which the S&P 500 returned more than 27%. The index historically gains during the Santa Claus rally – the last five trading days of the current year as well as the first two of the new year. The period began this week more precisely on Monday.
Technology stocks helped to boost the S&P 500 on Monday. Nvidia and AMD were among the average’s top gainers, respectively gaining 5.6% and 4.4%.
Energy stocks were also among the S&P 500’s leaders as oil prices moved higher. Devon Energy advanced nearly 6.1%, APA Corp gained about 7.3% and Diamondback Energy added 4.9%. The energy sector is set to finish the year as the index’s top-performing group.
Shares of GoDaddy gained about 8.4% after reports that activist investor Starboard Value LP took a 6.5% stake in the domain registrar.
Nevertheless, travel stocks were lower on Monday as Covid disruptions hit those sectors. Airline stocks declined after a holiday weekend that saw thousands of flights called off due to Covid-related problems. United Airlines, American Airlines, and Delta Air Lines all closed lower.
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