U.S. stocks edged higher in thin trading as declines in tech stocks eased amid speculation the economic recovery can weather the surge in coronavirus cases. Treasury yields rose across the board.
The S&P 500 appeared to be heading toward a record close, while the Dow Jones Industrial Average was also poised to end the day at an all-time high. The Russell 2000, a proxy for the reopening trade, rebounded. The Nasdaq 100 was little changed. The yield on 10-year Treasuries climbed to 1.55%, the highest since November, while the dollar dropped.
Omicron fears are easing on growing evidence that the fast-spreading strain leads to milder symptoms, even as worldwide Covid-19 cases rose above 1 million for a second straight day. Coronavirus developments along with Federal Reserve policy tightening and China’s outlook rank among the key risks for 2022.
“We just might get a relatively calm last week of the year after all,” Matt Maley, chief market strategist for Miller Tabak + Co. wrote. “That said, thin markets can change on a dime, so investors will want to stay nimble over the next three days.”
