Global stocks began 2022 in bullish fashion, with major bourses notching records and Apple’s valuation briefly hitting $3 trillion as investors monitor the COVID-19 pandemic and looming central bank rate decisions.
The CAC 40 index in Paris kicked off the rally with new intraday and closing records while Frankfurt’s DAX rose 0.9 percent in thin holiday trading. London and Tokyo were among global markets that were shuttered for holidays.
On Wall Street, both the Dow and S&P 500 ended at records as indices pushed higher.
Apple briefly climbed to $3 trillion in value, becoming the first U.S. company to hit that benchmark. The tech giant’s valuation later retreated, though its share price was 2.5 percent higher at the close.
“Welcome to 2022, which is looking like 2021 so far for the equity market,” market analyst Patrick O’Hare at Briefing.com said.
The market “looks as if it will keep riding the rails with the help of new inflows that are typically seen on the first trading day of a new month,” he added.
Monday’s landmarks come on the heels of a series of all-time highs in December as markets continue to bet the latest surge in COVID-19 cases won’t derail economic growth.
Comments from health experts characterizing the omicron variant as less lethal than earlier COVID-19 strains have boosted markets.
A bigger question mark is the shift in monetary policy, with investors now betting that the Federal Reserve will raise interest rates later this year.
The yield on the 10-year U.S. Treasury note vaulted above 1.6 percent Monday, the latest indication of this expectation.
A note from Briefing.com said the rise in yields may also reflect “an improving perspective on the economy.”
Oil prices
Elsewhere, oil prices finished a volatile session higher as eyes turn to the meeting of OPEC and other major producers on Tuesday.
So far OPEC+ has resisted pressure by top oil-consuming nations, such as the United States, to more aggressively boost production.
The 23 members of OPEC+ are expected to continue to stay the course and modestly boost output at their monthly meeting to be held via videoconference.
Source: Voice of America