Wall Street closes at all-time high; US Treasuries decline

US stocks rose to a record on speculation the recovery in the world’s largest economy can weather the Omicron coronavirus flareup. Bonds fell.

Trading volume was low ahead of the holidays. Electric-vehicle startup Nikola surged amid optimism about deliveries. US-listed shares of JD.com sank on Tencent Holdings’s plan to distribute over $US16 billion ($22.1 billion) of the Chinese e-commerce firm’s stock as a one-time dividend. Crocs, the colourful clog maker, plunged after agreeing to buy casual-shoe brand Heydude for $US2.5 billion. Bitcoin climbed above $US50,000.

The S&P 500 rose 0.6 per cent as of 4 pm New York time. The Nasdaq 100 rose 0.8 per cent and the Dow Jones Industrial Average added 0.5 per cent. The MSCI World index gained 0.8 per cent. Meanwhile, on the bond market, the yield on 10-year Treasuries advanced four basis points to 1.49 per cent. Germany’s 10-year yield advanced four basis points to -0.25 per cent and Britain’s 10-year yield rose four basis points to 0.92 per cent.

US consumer sentiment increased in December as households grew more upbeat about the economy. Sales of new homes rose in November to a seven-month high, while orders for durable goods beat forecasts. Consumer spending — adjusted for inflation — stagnated as the fastest price gains in nearly four decades eroded purchasing power. Jobless claims were little changed last week.

Merck’s COVID-19 pill was cleared by US regulators, giving high-risk patients another at-home treatment option. New York City is limiting crowds and adding more health and safety measures for revellers at the New Year’s Eve ball drop in Times Square. People infected with Omicron are 50 per cent to 70 per cent less likely than those with delta to be admitted to hospitals, the UK Health Security Agency said.

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“We’re still in a pretty good spot for equities,” said Anu Gaggar, global investment strategist at Commonwealth. “Real rates remain low and liquidity conditions remain quite easy, household and corporate balance-sheets are healthy and consumer confidence also remains high. It is not time to head for the exits.”

US markets are closed on Friday for Christmas Eve. Other markets such as the London bourse and the ASX close earlier.

Bloomberg