US stock futures were muted on Tuesday after the S&P 500 took a breather in earlier trading, closing a choppy day in the red after the index halted its four-day rally towards the all-time high of the 70 level.
Contracts in Dow, S&P and Nasdaq rose slightly but were mostly flat.
Markets closed mixed after swing action from all three major indices as investors weighed rising coronavirus cases worldwide. After hitting an intraday high, the S&P 500 reversed course at midday to decline, while the Dow Jones extended its five-day winning streak. The Nasdaq tumbled, dragged down by the ongoing sell-off in technology stocks.
The pullback caused by the Omicron variant is similar to the one that occurred when the delta dynasty first took a trajectory and is likely to see the same gradual but upward recovery,” Erin Gibbs, chief information officer for Main Street Asset Management told Yahoo Finance Live.
We encourage our clients to stay in the markets, not get out, because when that recovery occurs and when sentiment changes, it happens so quickly that often when you come back to the market, you’ve already missed out.
Global COVID-19 cases hit a record daily this week, with more than 1.44 million infections reported worldwide as of Monday, according to Bloomberg. Infections from the highly transmissible Omicron variant — which spreads 70 times faster than previous strains — included many of the newly traced cases, although studies show illness from the strain is less likely to be severe or lead to hospitalization.
The Centers for Disease Control (CDC) also relaxed its guidance on quarantining after exposure to the virus, halving its recommendation for isolation when a positive test is taken from 10 to five days.
December was a volatile month for investors who weighed the impact of the stress on the economy, but recent developments suggesting that Omicron may cause a milder illness helped markets shake off earlier fears.
“Conversely, bad news about Omicron could be good news for markets as it gives the Federal Reserve the impetus to continue these very loose monetary policies,” Octavio Marenzi, CEO of Obimas LLC, told Yahoo Finance Live. “A lot of good news for the real economy could actually be very bad for the markets.”
On Tuesday, US home price growth slowed for the third consecutive month but continued to rise overall. Standard & Poor’s CoreLogic Case-Shiller National Home Price Index. It posted a 19.1% annual gain in October, down from 19.7% from September. 20-City Composite posted an annual increase of 18.4%, down from 19.1% in the previous month.
Home prices continue to rise at double-digit rates — two to three times faster than last year — across all metropolitan areas, Selma Heep, CoreLogic’s deputy chief economist, said in a statement before the results.
“Unfortunately, the rate of home price growth will limit the number of young buyers who have not yet accumulated sufficient capital gains, and the expected increase in mortgage rates next year will create further challenges,” she said. Keep a lid on the continued acceleration of housing prices.”
The rest of the week is expected to remain quiet amid the normally low year-end trading volumes and a light calendar of economic data and earnings releases, although investors will be heading Thursday for a fresh reading on initial jobless claims as they continue to do so. Evaluate the progress of economic recovery.
6:00 PM ET: Stock futures open flat
Here’s how the markets move before trading overnight:
S&P 500 futures contract (ES=F): +3.75 points (+0.08%), to 4782.25
Dow futures (YM = F): +8.00 points (+0.02%), to 36290.00
Nasdaq Futures (NQ=F): +30.75 points (+0.19%) to 16518.75
Crude Oil (CL=F): +$0.09 (+0.12%) to $76.07 per barrel
Gold (GC = F): – $4.00 (-0.22%) to $1,806.90 per ounce
10-Year Treasury (^TNX): -1.6 basis points to gain 1.484%
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed
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