Stocks End Mixed After Four-Day Rally
5:04 pm Tuesday, December 28th, 2021
The S&P 500 edged lower after hitting a record intraday high on Tuesday, as a four-day rally lost steam in thin trading and investors eyed Omicron-driven travel disruptions and store closures. The Centers for Disease Control and Prevention (CDC) on Monday shortened the recommended isolation time for Americans with asymptomatic cases of COVID-19 to five days from the previous guidance of 10 days.
The Nasdaq and Russell 2000 are leading the way lower after entering the session up 5.9% and 5.7%, respectively, over the prior four sessions. The S&P 500, being up 4.9% over the same period, was holding line but fatigue finally seems to be kicking in, as well as a profit-taking motive in technology stocks.
Below-average trading volume at the NYSE might be playing a factor, too, leaving the market in a susceptible state for increased volatility. Declining issues outnumber advancing issues at both the NYSE and Nasdaq, although seven of the 11 S&P 500 sectors are still trading higher.
The information technology sector (-0.7%) has slipped into the laggard position after leading them market higher yesterday, while the utilities sector (+0.8%) is the only sector up more than 0.5%. The health care sector (-0.6%) is another heavily-weighted laggard.
Apple (AAPL) and Microsoft (MSFT), the two largest stocks in the market, are down modestly while NVIDIA (NVDA) is showing a steeper decline after rising 4% yesterday. The Philadelphia Semiconductor Index is down 1.4%.
Travel-related stocks, meanwhile, are seeing some relief after the CDC shortened the recommended isolation time for asymptomatic people with COVID-19 to 5 days from 10 days. The decision comes as workplaces have been disrupted by the Omicron variant, as seen in airlines, cruise lines, and sporting events.
The Treasury market hasn’t moved much during the recent slippage in equities. The 2-yr yield is up four basis points to 0.74% while the 10-yr yield is down one basis point to 1.47% — similar levels to when the stock market opened for trading.
