Jakarta, CNBC Indonesia – The United States (US) stock market tends to be varied at the opening of trading Wednesday (12/29/2021), welcoming the latest news of the latest Covid-19 variant, namely Omicron which is indicated to help antibodies against the Delta variant.
The Dow Jones Industrial Average edged up at 08:30 local time (21:30 GMT) and 5 minutes later to 52.88 points (+0.15%) at 36,451.09 while the S&P 500 gained 8.84 points (+ 0.18%) to 4,795.19. The Nasdaq grew 20.51 points (+0.13%) to 15,802.23.
The US has so far reported more than 4.1 million cases of Covid-19 this month, according to Johns Hopkins University data. This figure is far above November’s position of 2.54 million. The average new case in the past week reached 231,888 cases, or three times above the November 27 average.
However, the Centers for Disease Control and Prevention (CDC) announced a new recommendation that people with Covid-19 only need to isolate for 5 days, or shorter than the previous provision of 10 days. The condition is that they are asymptomatic patients.
Research from South Africa (South Africa) shows that omicron can strengthen immunity against delta variants. Since November, US stocks have strengthened and the S&P 500 index has added 4.8% as of December.
“I don’t think the market wants the speculative area it has enjoyed in recent years. Namely, stocks with high growth, price-to-earnings-per-share ratios [price to earning/PE ratio], crypto,” said Virtus Investment Partners analyst Joe Terranova, as quoted by CNBC International.
The Dow Jones scored its fifth daily rally on Tuesday, rising more than 90 points. The S&P 500 index even passed its daily high. The Nasdaq was actually hit by a sell-off, weakening 0.6%.
Yesterday’s rally confirmed the formation of the “Santa Claus rally” phenomenon which refers to the rally of the last 5 trading days in December and the first five days of January. Historically since 1928, the S&P 500 index has gained an average of 1.7% in the period.
CNBC INDONESIA RESEARCH TEAM
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