Futures contracts rise before first trading day of 2022
Traders work on the floor of the New York Stock Exchange (NYSE) on December 08, 2021 in New York City.
Spencer Platt | Getty Images
U.S. equity futures rose on Sunday night as Wall Street appeared to start 2022 on solid footing.
Futures contracts linked to the Dow Jones Industrial Average rose 80 points. Those of the S&P 500 added 0.3%, while the Nasdaq 100 futures gained 0.4%.
The move in futures comes after markets closed a strong 2021 year last week. The S&P 500 rose nearly 27% for the year, with the Nasdaq Composite and the Dow also posting strong returns. Stocks edged lower on Friday, but the S&P 500 and Dow Jones were positive for the last week of the year.
The new year begins with lingering uncertainty around the Covid-19 pandemic. The rise of the omicron variant has resulted in thousands of flight cancellations during the holiday season and has led some businesses and schools to consider temporary closures. Several major Wall Street banks have asked their employees to work from home during the first weeks of January.
Infectious disease expert Dr Anthony Fauci told ABC’s “This Week” Sunday that U.S. health officials may soon update the guidelines to include a recommendation for testing to report when a person who has previously tested positive for Covid can leave isolation.
Inflation and monetary policy are also expected to be key themes for 2022, as investors expect the Federal Reserve to hike rates several times over the coming year to help curb the rise in prices for consumers.
âMuch like the economy as a whole, the market history for 2022 will be back to normal. As hiring continues, spending increases, and businesses hire and invest, the economy will be normal. The government normalizes policy on the same expectations. When you look at the macro picture, the general theme is that 2022 will get us back to something like normal, âBrad McMillan, Commonwealth Financial Network chief investment officer, said on Friday in a note to clients .
The market could see a boost on Monday thanks to Tesla shares. The electric vehicle company announced 308,600 deliveries in the fourth quarter, beating expectations.
The first week of the year will be a busy one for economic data, with December’s key jobs report due out on Friday morning. On Monday, investors will have an updated snapshot of manufacturing activity and construction spending.