4:05pm: US equities close higher
US stocks closed higher post-Christmas weekend as investors remained positive on the overall equity outlook amid a surge in COVID-19 cases thanks to the Omicron variant.
The markets are being buoyed by new studies that suggest the Omicron strain has a lower risk of hospitalization than other COVID-19 variants.
Meanwhile, investors are looking for a Santa Claus rally to close out the year.
On the day, the DJIA jumped by 325 points, or 0.90%, to 36, and the S&P 500 increased 1.37% to 4,790.
And the tech-heavy Nasdaq rose 215 points, or 1.37%, to 15,867.
12.14pm: US stocks higher
Major US stocks pushed forward midday after the holiday weekend, as the few investors staying on Wall Street capitalized on what is traditionally a lightly attended but bullish week.
The S&P 500 rose over 1% after the index hit its 68th record close of 2021 on Thursday. The US markets were closed Friday for the holiday. The tech-focused Nasdaq Composite Index was even stronger, jumping 175 points, or 1.1%, while the Dow Jones Industrial Average gained 0.6%.
According to market watchers, investors are braced for higher volatility over the holiday season due to rising concerns over the rapid spread of the Omicron variant of Covid-19.
According to the Wall Street Journal, flight cancellations marred the Christmas weekend for many travelers, as Covid-19 left carriers short-staffed to operate busy schedules over the holiday. United Airlines Holdings declined 0.7% and American Airlines Group (NASDAQ:AAL) shed 0.9%.
9.55am: Christmas cheer continues
US stocks rose in early trading on Monday, extending the positive run seen before the Christmas holiday, albeit in thin volumes with little news to provide a lead.
The Dow Jones Industrial Average gained 160 points, or 0.5% at 36,111, while the broader S&P 500 rose 0.6%, and the tech-laden Nasdaq Composite Index also added 0.6%.
Among the gainers, GoDaddy (NYSE:GDDY) shares rose nearly 7% after The Wall Street Journal reported that activist investor Starboard Value has a sizable stake in the domain registrar and plans to push it to boost its performance.
6.50am: Mixed indications
US stocks looked set to be mixed at the start of the first session after the holidays with little news to drive markets and traders expected to book some profits after a strong three-day rally that took place before Christmas.
Futures for the Dow Jones Industrial Average were flat, contracts for the tech-focused Nasdaq-100 just edged higher, although those for the broader S&P 500 were up 0.2% on Monday.
US markets were closed on Friday, Christmas Eve for the holiday but on Thursday the US indexes all ended higher.
Investors are braced for higher volatility and thin volumes in the final trading week of 2021 as concerns over the rapid spread of the coronavirus (COVID-19) Omicron variant and the economic impact of restrictions to stem the tide are mitigated by vaccines and the rollout of booster shots.
Naeem Aslam, chief market analyst at Avatrade.com commented: "The focus among investors and traders continues to remain on three important factors. Firstly, the economic data—traders would like to see more strength in the economic numbers, then you have the ongoing Omicron Covid infection ratio—this is increasing for the last number of weeks, and finally the hawkish monetary policy stance among central bankers.
"The biggest fear is that ahead of the new year, a time when large parties take place, governments could announce some strict measures--to prevent the further spread of the Covid variant-- which can lead to total lockdown. Even if they don’t take those measures, it is pretty much a given that we are likely to see the Covid infection rate soaring after the New Year as people will be careless about Omicron."
"The fact is that no one wants to see another total lockdown as they have an adverse influence on the economy. The world is still suffering from supply bottleneck shortages due to Covid restrictions introduced last year," Aslam concluded.
On the corporate front, shares of airline companies were weak in premarket trading as flight cancellations marred Christmas weekend for many travelers, with COVID-19 cases leaving carriers short-staffed to operate busy holiday schedules.