BEIJING — Wall Street stocks rose Monday afternoon in an encouraging start to the New Year. They closed 2021 with huge gains and are now in the third consecutive year.
As of 12:02 p.m. Eastern, the S&P 500 had gained 0.1%. The Dow Jones Industrial Average climbed 49 points or 0.1% to 36,387, while the Nasdaq grew 0.6%.
Technology companies gained ground, as did a mixture of retailers. Tesla jumped 10.3% after after reporting strong delivery numbers for 2021.
The yields on bonds rose substantially. The 10-year Treasury yield rose from 1.51% Friday to 1.62%. Higher yields are a key factor in banks charging more attractive interest on loans. Bank of America increased 4.1%
Investors are more confident in economic growth when smaller company stocks outperform the wider market. The Russell 2000 rose 0.6%.
The market’s gains were held back by losses in health care companies and a wide range of declines in other industries. Pfizer lost 3% despite the fact that the U.S. is getting closer to expanding its COVID-19 booster shot for children as young 12 years old.
The mix of household goods manufacturers also dropped.
With the threat of a virus pandemic still present, investors are preparing for a new year. Since December, Wall Street has been closely monitoring the latest cases of the omicron variant.
Both consumers and businesses are still facing supply chain issues and persistently increasing inflation, which has led to a wider range of goods becoming more expensive. Rising costs could impede consumer spending and reduce economic growth.
The market’s long list of worries made 2021 a difficult year, but it didn’t stop it from posting another year of strong gains. The S&P 500 ended 2021 with a 26.9% gain, which is a total return 28.7% including dividends. This is almost as much as what the benchmark index gained for 2019.
Investors have a number of key economic data points to look forward too during the first week in the new year. Investors will get an update from the Institute for Supply Management on Tuesday, and Thursday on the services sector.
This Friday’s Labor Department jobs report is the main event on the economic calendar.
