U.S. equities rise while bonds slide; Telsa gains
BNN Bloomberg
U.S. equities gained while Treasuries extended losses as traders braced for the start of a potentially volatile year.
U.S. equities gained while Treasuries extended losses as traders braced for the start of a potentially volatile year.
The S&P 500 and Nasdaq 100 rose as European stocks climb toward a record amid light volumes with markets including the U.K., Japan and China still closed for holidays.
“Though omicron’s impact remains uncertain, concerns about its potential impact on the economic recovery have eased, focusing attention on the Fed rate hike process and anticipation of lower inflation,” wrote Dennis DeBusschere, founder of 22V Research, an independent research shop.
The yield on the U.S. 10-year note rose 8 basis points to 1.59 per cent.
Among notable stock moves, Tesla Inc. climbed 8.6 per cent as the carmaker navigated supply-chain disruptions to report blowout deliveries for the fourth quarter. Nvidia Corp., Ford Motor Co. and PayPal Holdings Inc. also posted modest gains. And in Hong Kong, property shares dropped while China Evergrande Group halted trading.
“Bottom line, the outlook is positive for stocks, but the removal of stimulus/accommodation from the global economy is a major theme to watch as we start 2022, as it’ll be the first time since 2018 that the Fed is hiking rates, and that change will impact markets throughout the year,” wrote Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter.
