S&P, Dow futures at record highs as rally sustains

[December 28, 2021]    By Medha Singh

(Reuters) - The S&P 500 and Dow futures hit all-time highs on Tuesday, building on a record-setting rally amid thin trading volumes, with investors trying to shrug off the impact from Omicron-driven travel disruptions and store closures.

A Christmas tree is seen outside of the New York Stock Exchange (NYSE) on the last day of trading before Christmas in Manhattan, New York City, U.S., December 23, 2021. REUTERS/Andrew Kelly

Apple Inc closed all of its 12 New York City stores to indoor shopping, the latest company to tighten protocols as cases surged across the United States and prompted thousands of flight cancellations for the fourth day on Monday.

However, strong consumer demand trends reinstated confidence about the underlying economic strength and helped Wall Street climb for a fourth straight day on Monday. The S&P 500 and Nasdaq posted their best four-day rally since November 2020.

Data last week showing the Omicron variant being less deadly than feared, and new pills and more vaccines to fight COVID-19 also spurred risk appetite, putting the three main indexes on pace for monthly gains.

At 6:36 a.m. ET, Dow e-minis were up 87 points, or 0.24%, S&P 500 e-minis were up 12.25 points, or 0.26%, and Nasdaq 100 e-minis were up 83.25 points, or 0.5%.

Some megacap companies have roared in the recent rally, with Apple Inc — up marginally in premarket trading — within spitting distance of becoming the first U.S. company to hit $3 trillion in market capitalization.

Tesla Inc jumped 1% in premarket trade after surging nearly 22% in value over the past four sessions.

Markets are in one of the seasonally strong periods, also called the Santa Claus Rally, with CFRA Research data showing the S&P 500 has on average risen 1.3% in the last 5 trading days of the year, and first two days of the new year since 1969.

(Reporting by Medha Singh in Bengaluru; editing by Uttaresh.V)

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