The S&P 500 index is up 27% this year and looks set for another new record close after Monday’s becomes the 69th such close.
Tech and energy stocks led the S&P 500, with AMD and Nvidia among notable gainers.
The S&P 500 rallied on Monday as investors saw yet another surge in US stocks following last week’s impressive close ahead of the Christmas holiday.
The gains saw the index close at a new high for the 69th time this year, with fresh gains likely given improved investor sentiment around the Omicron variant.
The S&P 500 closed at 4,791.30, gaining 1.4% on the day as it hit a record close for the 69th time in 2021. With the index also seeing an intraday record high, it looks like the next few days could see bulls add to the index’s 27% year-to-date gains.
Recently, Fundstrat Global Advisors’ head of research Tom Lee said the S&P 500 could gain by 11% to 5,100 in the second half of 2022.
Nasdaq Composite and the Dow see gains too
The Nasdaq Composite and the Dow Jones Industrial Average also notched some gains as the Santa rally hit the markets. Nasdaq rose 1.4% to 15,871.26, while the Dow climbed 1% as it added 352 points to 36,302.77.
For the year, the Nasdaq is 23% up, while the Dow’s YTD gains stood at 18% at close on Monday.
The rally also comes as JPMorgan analysts say investors have been too bearish over the past several weeks due to Omicron and the Federal Reserve’s monetary policy. But according to the analysts, this should not be the case and investors should weigh some risk-on plays even if there have been sharp sell-offs in some of the potential buys.
Tech and energy stocks lead among S&P 500 gainers
Tech and energy stocks were the standout gainers in the S&P 500 on Monday, the first day of the seven encompassing five days this week and the first two trading sessions in the new year.
Both sectors gained by more than 2% on the day, with AMD (+5.7%) and Nvidia (+4.4%). In the energy sector, APA Corp topped with +7.3% at close, while Devon Energy shares rose 6.1%.
But while tech and energy stocks soared, the travel sector continued to face pressure. There were sell-offs for airline and cruise line stocks, with Delta Air and United Airlines among the main losers in the air travel industry.
For cruise lines, the Royal Caribbean, Carnival and the Norwegian all closed lower amid Covid-19 concerns.