4.05pm: Dow up for the sixth straight session
US stocks finished the trading session mixed as the Dow and S&P 500 neared all-time highs.
At the close, the Dow gained 90 points to 36,489, while the S&P 500 added 7 points at 4,793 and the tech-heavy Nasdaq slipped 16 points to 15,766.
Notable movers included shares of Biogen Inc (NASDAQ:BIIB), which climbed more than 9% following a South Korean media report that the biotechnology company is in talks to be acquired by Samsung.
12:00pm: US equities mixed midday
US stocks were mixed midday amid inflation, Omicron concerns.
Higher-growth technology stocks, which are sensitive to rising interest rates, dipped as the benchmark US 10-year Treasury yield jumped above the 1.5% level.
Investors also continue to assess the threat of the COVID-19 variant as the US has confirmed more than 4.1 million cases this month. However, new studies suggest the Omicron strain has a lower risk of hospitalization than other COVID-19 variants.
As of noon, the Dow Jones Industrial Average was up 64 points, or 0.17%, to 36,459 -- its sixth-straight day in the green. The S&P 500 increased 1 point, or 0.02%, to 4,787.
But the tech-heavy Nasdaq dropped 47 points, or 0.30%, to 15,734.
Joshua Mahony, senior market analyst at online trading group IG, said that amid Omicron concerns growth stocks are losing momentum in the US thanks to rising inflation.
“Underperformance for the Nasdaq highlights increased risks for growth stocks, as surging inflation brings a pathway for higher interest rates globally,” he said. “The desire to pay lofty prices for unprofitable stocks does tend to wane when central banks start to tighten the screw, with many likely to focus more on pro-cyclical and value stocks as a result.”
9.37am: US stock edge up quietly
US stocks were modesty higher at the opening as investors parsed the latest headlines on the Omicron variant amid thin trading in the final days of the year.
The S&P 500 was relatively flat, opening 0.2% higher, while the Dow Jones Industrial Average ticked up 40.56 points, or 0.1% higher. The tech-dominated Nasdaq which took a beating on Tuesday climbed 0.1% to 15,807.02 at the open.
Markets were highly volatile in December as investors reacted to every bit of news that could guide expectations over how the Omicron variant may play out.
“There’s an element of positivity. The data continues to suggest that the disease itself caused by Omicron is materially less severe than the variants which have preceded it,” James Athey, an investment manager at Abrdn told The Wall Street Journal. “That’s always been the endgame for the pandemic.”
7.00am: Stocks to open modestly higher
US stocks are once again forecast to open modestly higher, looking to finish 2021 positively as investors focus ahead to the new year.
Futures for the Dow Jones Industrial Average futures rose 0.1%, while those for the S&P 500 also added 0.1%, and contracts for the Nasdaq-100 futures gained 0.2% on Wednesday.
US stocks ended mixed on Tuesday, with the Dow gaining 0.3%, but the S&P 500 losing 0.1% and the Nasdaq Composite dropping 0.5%, albeit with trading volumes at the lowest level seen all year.
Investors seem to be becoming increasingly comfortable with the theory that the Omicron coronavirus (COVID-19) variant may not lead to harsh restrictions on commerce and movement as more information emerges, with many expecting a continued economic recovery.
Looking at the economy, the National Association of Realtors will release US pending home sales data for November at 10.00am ET, with economists expecting a slowdown from the previous month.
On the corporate front, Tesla Inc (NASDAQ:TSLA) shares rose in pre-market trading as its chief executive Elon Musk exercised the final batch of a package of vested stock options, a series of transactions that have boosted his stake in the company.
But shares in egg producer Cal-Maine Foods (NASDAQ:CALM) cracked in after-hours trading on Tuesday after the company reported a decline in profits, citing higher costs.
Elsewhere, Bitcoin stabilized after its biggest drop in nearly a month, rising 0.5% to around $47,800 after sliding as low as $47,318.93 the previous day.