✈️Travel stocks weaken✈️
Monday was a mixed bag. Key recovery stocks such as the travel stocks performed weaker amid a surge in Omicron cases, weighing on sentiments. The airline and cruise related tickers were hit the hardest.
Undoubtedly, airlines were first on the roll as we heard the news of massive flights cancellations. These were attributed to safety concerns and the lack of sufficient staff as more people get infected, although the symptoms reported thus far were mild.
Based on the latest data, FlightAware had reported over 1000 flights being cancelled coming into or within the US. It does not help that another 3300 flights were delayed. More flights cancellation is on the card as companies try to get people to work from home. This means more volatility ahead.
🎉Good news: S&P 500 hit a record💰
It’s not all gloomy on Monday. The S&P 500 had a good run and hit a record. It seems like the Santa rally did arrive. Investors look beyond the variant and assess its impact on the US economy.
About 455 stocks in the index finished higher. The big tech continued to fuel the gain as AAPL, MSFT, and NVDA took the lead. It appears that big tech is doing the heavy lifting of the index. Given these four straight days of gain, S&P 500 managed to clinch another record high to reach 4725.
Market participants have priced in a less virulent strain of Omicron, and it seems that only recovery stocks appear to wobble while other sectors remain primarily resilient. However, trading is likely to be quiet without much corporate news until New Year and light economic data for the week.
We hope you enjoy this quick market pulse, and we hope to see you in the next one!
Pika World wishes you a Moonatic week ahead!
Cheers,
Pika Nat
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