By Mark DeCambre
U.S. stock index futures on Friday were headed modestly lower, in the final trading day of 2021, with risk appetite waning on New Year’s Eve.
With most European markets closed or shutting down early on Friday, trading is expected to be thin in U.S. markets too as investors close out a good year for global equities with economies recovering from the global pandemic.
Read:Is the U.S. stock market closed on Friday for New Year’s Eve? No. It isn’t even closed on Monday. Here’s why!
How are stock benchmarks trading?
On Thursday, the Dow closed down 90.55 points, or 0.3%, to 36,398.08, the S&P 500 index fell 14.33 points, or 0.3%, to close at 4,778.73, the Nasdaq Composite Index declined 24.65 points to 15,741.56, a 0.2% loss.
What’s driving the market?
It is the final trading session of the week, month, quarter and year, which is one reason that Wall Street is open on New Year’s Eve and will see regular trading hours as market participants close out their trading logs.
However, thinner holiday volumes could result in some choppiness in the action in the final session of 2021, following a strong start to the past week of December, as investors assess the path ahead for markets, a path that has been colored by a global pandemic that has last about two years so far.
Despite the recent dips in the action, both the Dow and the S&P 500 posted record-high closes this week, with the rise for equities supported by the belief that disruptions from the omicron variant that causes COVID-19 won’t be lasting.
The seven-day average of COVID-19 cases in the U.S. has risen at a parabolic pace to 344,543 on Thursday, up from 301,477 on Wednesday, which is up about fourfold since Dec. 1 and 37% above the January 2021 daily peak of 251,232, according to a New York Times tracker. Hospitalizations also kept climbing, but at a slower pace, as the daily average reached 81,847 on Thursday,
Airlines canceled hundreds of flights Thursday because of labor shortages after thousands were scrubbed during the Christmas weekend, and the Federal Aviation Administration also warns of possible delays tied to the virus at the federal agency. Also, the Centers for Disease Control and Prevention has recommended that Americans avoid taking cruises, whether they are vaccinated or not.
JPMorgan Chase is one prominent bank that has offered its employees the option of working from home to start 2022. The money-center bank run by Jamie Dimon is “allowing for more flexibility during the first two weeks of January to work from home (if your role allows) at your manager’s discretion,” Bloomberg reported, citing a Thursday memo to employees.
However, in South Africa, where the omicron variant of COVID was first identified, the government said the country’s latest viral wave had subsided and it would be easing restrictions. In America, while daily covid cases soared to a record high, the Centres for Disease Control and Prevention said that relatively few people are being hospitalised or dying as a result of omicron. And White House medical expert Anthony Fauci has said that he is expecting the omicron outbreak to peak by the end of January.
There is no U.S. data due to the holiday and the bond market will close an hour earlier at 2 p.m. Eastern on Friday.
Which companies are in focus?
How are other assets faring?
(END) Dow Jones Newswires
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