US stocks gain after hitting fresh records as investors await new economic data

Traders work on the floor of the New York Stock Exchange (NYSE) on November 05, 2021 in New York City.

US stocks gained higher Tuesday after hitting fresh records as investors await new economic data.

Offering some indication on the health of the US economy will be ISM manufacturing index and JOLTS job openings data, both due to be released at 10 a.m. ET.

The S&P 500 edged higher after the benchmark index notched a new record in the previous session to gain 0.6%. The Dow Jones Industrial Average, which also hit a new all-time high on Monday, and the tech-heavy Nasdaq both climbed as well. 

Here’s where US indexes stood at the 9:30 a.m. ET open on Tuesday: 

The benchmark index delivered another “extremely strong year” in 2021, gaining 28.7% on a total return basis, fueled by a year-end 4.5% rally in December, read a note from Bank of America Tuesday. “Over the past three years, the index more than doubled including dividends,” the bank added.

Equities have continued to trend higher in to kick off 2022 despite a record number of new COVID-19 cases. On Monday, reported daily cases in the US exceeded 1 million for the first time due in part to the more contagious Omicron variant.

In the US, researchers at Columbia University estimated that the country could see infections peak by January 9.

“We believe the first element of relief for markets will be the peak in Omicron cases,” Fundstrat Head of Research Tom Lee said in a Tuesday note. “As we know, Omicron has proven highly contagious and is going to drive record case figures.”

Through the rest of this week, investors will be turning their attention to the minutes of the Federal Open Market Committee meeting, which are scheduled for release Wednesday.

The 10-year Treasury note yield rose to 1.666% from Monday’s 1.628% as investors flocked towards stocks and bet on tighter monetary policy from the Federal Reserve in 2022. Bond yields move inversely to prices.

Oil prices edged higher after posting solid gains Monday, with upbeat economic predictions raising expectations for demand.

West Texas Intermediate crude oil rose as much as 1.20% to $76.99 per barrel. Brent crude, oil’s international benchmark, rose as much as 1.22% to $79.94 per barrel.

Gold fell as much as 0.23% to $1,808.17 per ounce.  

Read the original article on Business Insider

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