U.S. Stocks May Extend Last Week’s Rally In Early TradingDecember 20, 2021
Following the rally seen last week, stocks may see some further upside in early trading on Monday. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2 percent.
Stocks may continue to benefit from the strong upward momentum seen in the previous week, which lifted the S&P 500 to a new record closing high last Friday.
Trading activity may be somewhat subdued, however, as traders look ahead to the Federal Reserve’s money policy announcement on Wednesday.
The Fed is expected to discuss accelerating the pace of tapering its asset purchase program, with reports suggesting the central bank could double the rate to $30 billion per month.
A lack of major U.S. economic data may also keep traders on the sidelines ahead of the release of reports on producer prices, retail sales, and industrial production in the coming days.
Following the pullback seen on Thursday, stocks moved back to the upside during trading on Friday. The major averages fluctuated in morning trading but climbed more firmly into positive territory in the afternoon.
The major averages moved higher going into the close, with the Dow and the S&P 500 reaching new highs for the session. The Dow rose 216.30 points or 0.6 percent at 35,970.99, the Nasdaq climbed 113.23 points or 0.7 percent to 15,630.60 and the S&P 500 jumped 44.57 points or 1 percent to 4,712.02.
The advance on the day capped off a strong week for the major averages. The Dow spiked by 4 percent, while the S&P 500 and the Nasdaq surged up by 3.8 percent and 3.6 percent, respectively.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan’s Nikkei 225 Index climbed by 0.7 percent, while Hong Kong’s Hang Seng Index dipped by 0.2 percent.
Meanwhile, European stocks have moved mostly higher on the day. The German DAX Index is up by 0.8 percent and the French CAC 40 Index is up by 0.1 percent, although the U.K.’s FTSE 100 Index has bucked the uptrend and edged down by 0.2 percent.
In commodities trading, crude oil futures are falling $0.39 to $71.28 a barrel after climbing $0.73 to $71.67 a barrel last Friday. Meanwhile, after rising $8.10 to $1,784.80 an ounce in the previous session, gold futures are edging down $0.20 to $1,784.60 an ounce.
On the currency front, the U.S. dollar is trading at 113.62 yen versus the 113.44 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1287 compared to last Friday’s $1.1313.
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