US stocks end mixed as Dow hits another record while Nasdaq falls more than 1%
- US stocks closed mixed Tuesday, with the S&P notching a new high while the Nasdaq slipped.
- Activity in the manufacturing sector grew in December, though less than forecast, according to the ISM report.
- At the same time, a record 4.5 million Americans quit in November, according to the latest JOLTS release.
US stocks closed mixed Tuesday, with the
The Dow gained more than 200 points to notch a new record close. The tech-heavy Nasdaq was dragged lower by more than 1% by Zoom and Tesla.
The second trading day of 2022 officially marks the end of the so-called Santa Claus rally in the
Here's where US indexes stood at the 4:00 p.m. ET close on Tuesday:
- S&P 500: 4,793.54, 0.06%
- Dow Jones Industrial Average: 36,799.65, up 0.59% (214.59 points)
- Nasdaq Composite: 15,622.72, down 1.33%
Data released on Tuesday showed contrasting glimpses of the health of the US economy.
Activity in the manufacturing sector grew in December, though less than forecast, according to the latest Institute for Supply Management (ISM) report. At the same time, a record 4.5 million Americans quit their jobs in November, according to the latest Job Openings and Labor Turnover Survey (JOLTS) release from the Bureau of Labor Statistics.
"Risk appetite fizzled out after both a softer-than-expected ISM manufacturing report and JOLTS job openings suggested wages will have to rise," Edward Moya, senior equity analyst at Oanda, said in a Tuesday note.
He added that the so-called
As such, investors will be keeping their eye out for the minutes of the Federal Open Market Committee meeting, which is scheduled for release Wednesday.
Still, Wharton finance professor Jeremy Siegel believes US stocks will continue to rise in 2022 even as the Fed hikes interest rates to around 2% to stamp down on inflation.
Jumping off of 2021's impressive 27% gain, the S&P 500 continues to trend higher to kick off 2022 despite a record number of new COVID-19 cases. On Monday, reported daily cases in the US exceeded 1 million for the first time due in part to the more contagious Omicron variant.
In the US, researchers at Columbia University estimated that the country could see infections peak by January 9.
The 10-year Treasury note yield rose to 1.659% from Monday's 1.628% as investors flocked towards stocks and bet on tighter monetary policy from the Fed this year. Bond yields move inversely to prices.
Oil prices jumped after
Gold rose 0.56% to $1,814.04 per ounce.
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