US stocks twisted and turned on Tuesday morning as Wall Street returned from its long weekend to barrel through the last four trading days of 2022.
S&P 500 Index (^ The Salafist Group for Preaching and Combat(down by 0.2%, while the Dow Jones Industrial Average (^ DJI) advanced about 90 points, or 0.3%. Nasdaq Technology Heavy Composite (^ ix) slipped 0.8%.
China move to Scrap quarantine requirements For inbound travelers beginning Jan. 8, sentiment has given a boost, as the country expands to reopen after three years of COVID-free controls and travel restrictions. The National Health Commission also said on Monday that the country’s management of the virus would be downgraded to a high-level Category B Category A category.
In other pockets of the market, the US dollar index fell as China’s easing of virus protocols led to a move away from safe-haven assets. US Treasury yields fell higher after their biggest rise last week since April.
Oil prices have extended their recent climb to Touching its highest level in three weeks The prospect of reopening demand from China added to concerns about the impact of cooler weather in the US on production. West Texas Intermediate crude futures — the US benchmark — rose 1% to $80 a barrel.
The moves in early trading come after a bullish Friday that helped the S&P 500 and the Dow avoid a third consecutive weekly loss. The two indexes advanced 0.6% and 0.5%, respectively. The Nasdaq also closed higher on Friday but is down 1.5% for the week.
Investors were hoping for a Santa Claus rally It could provide some reprieve for stock markets as they head into their worst year since 2008. This phenomenon – the seasonal rally in the stock market that occurs at the end of December – is usually defined as the last five trading days of the year and the first two of the new year. Yale Hirschcreator of the Stock Trader’s Almanac, discovered the pattern in 1972.
A rough December marked by worries about interest rates and a recession kept selling pressure high throughout the month and dampened hopes for the usual year-end rally. But with a positive close on Friday marking the first day of the period, the stock market will be looking to post gains during the shortened trading week.
DataTrek’s Jessica Rabe notes that the S&P 500 has a measurably better win rate and average overall performance after a negative calendar year of less than 10% than one with a higher loss — and it’s set to finish 2022 in the latter category.
“However, when the index is down by double digits as it is today, the odds of it being positive next year are basically a currency flip and returns are not nearly as promising as if the S&P had finished lower lower if there were,” Rabih said in a recent note. Santa Claus Rally “For real this month, S&P probably ended the year down less than double digits.”
Alexandra Semenova is a correspondent at Yahoo Finance. Follow her on Twitter @employee
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