Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. Futures Edge Higher; Omicron Confidence Rises

Published 30/12/2021, 12:28 am
Updated 30/12/2021, 12:28 am
© Reuters

© Reuters

By Peter Nurse   

Investing.com - U.S. stocks are seen opening marginally higher Wednesday in holiday-thinned trade, continuing the recent positive tone as investors reassess the potential economic impact from the Omicron Covid variant.

At 7 AM ET (1200 GMT), the Dow Futures contract was up 10 points, or 0.1%, S&P 500 Futures traded 4 points, or 0.1%, higher and Nasdaq 100 Futures climbed 30 points, or 0.2%.

U.S. equities have rebounded since the hefty losses in late November when news of the fast-spreading Omicron Covid variant first emerged. The broad-based S&P 500 index has gained almost 5% in December, while the blue chip Dow Jones Industrial Average closed almost 100 higher on Tuesday, its fifth straight day of gains. The tech-heavy Nasdaq Composite has underperformed, dropping 0.6%.

This positive tone exists despite the average number of daily Covid-19 cases in the United States climbing to a record high of 258,312 over the past seven days, according to a Reuters tally.

The Omicron variant was estimated to make up 58.6% of the coronavirus variants circulating in the United States as of Dec. 25, according to data from the U.S. Centers for Disease Control and Prevention on Tuesday.

Recent studies have suggested the number of patients needing hospitalization with Omicron was sharply lower relative to Delta, the previous dominant variant, while vaccine makers have expressed confidence that their drugs will also offer protection.

Adding to the feeling of confidence, CDC Director Rochelle Walensky stated Tuesday that the center was not currently considering recommending a vaccine mandate for domestic flights. 

U.S. economic data has tended to be strong of late, including consumer confidence improving more than expected in December despite the resurgence in Covid-19 infections, suggesting that the country’s recovery remains on track. 

Turning to the corporate sector, Tesla (NASDAQ:TSLA) is likely to be in the spotlight with Chief Executive Officer Elon Musk having exercised all of his options expiring next year, probably removing the vast bulk of the stock overhang on the EV-maker after his pledge of selling 10% of his stake.

Elsewhere, JD.com (NASDAQ:JD) announced plans to boost its share buyback plan by 50%, now spending up to $3 billion, while also taking a five-year, $2 billion loan to fund its green projects and other corporate purposes.

Oil prices edged lower Wednesday, handing back some of the previous session’s gains on the back of a sharp decline in U.S. crude stockpiles.

Data from the American Petroleum Institute, released late Tuesday, showed U.S. inventories fell by 3.1 million barrels last week. If this is confirmed by  weekly data from the U.S. Energy Information Administration, due later Wednesday, it would be a fifth consecutive weekly decline, the longest run of draws since September.

By 7 AM ET, U.S. crude futures traded 0.7% lower at $75.45 a barrel, while the Brent contract fell 0.4% to $78.31 

Additionally, gold futures fell 0.8% to $1,796.65/oz, while EUR/USD traded 0.1% lower at 1.1301.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.