Funviralpark The S&P 500 (^GSPC) was down 0.6% and the Dow Jones Industrial Average (^DJI) was down 0.2%. The technology-focused Nasdaq Composite Index (^IXIC) fell 1.1%.
China’s move to lift quarantine requirements for inbound travelers from Jan. 8, expanding its reopening after three years of zero COVID controls and travel restrictions, boosted sentiment. The National Health Commission announced on Monday that it would downgrade the country’s virus control from the highest Category A to Category B.
Elsewhere in the market, the U.S. dollar index retreated as China’s easing of virus protocols spurred moves from safe-haven assets. It rose further after
Worries about the impact of the cold weather in the US on production, combined with the prospect of a resumption of demand from China, have pushed oil prices higher recently to a three-week high. West Texas Intermediate (WTI) crude oil futures — the US benchmark — rose 1% to above $80 a barrel.
The move in early trading comes after Friday’s gains helped the S&P 500 and Dow avoid three consecutive weeks of losses. The indices were up 0.6% and 0.5% respectively. The Nasdaq also closed higher on Friday, but he is down 1.5% this week.
Investors have hoped the Santa Claus rally could provide some respite for the stock market heading into its worst year since 2008. This phenomenon, the stock market seasonal rally that occurs at the end of December, is usually defined over the past five years. The trading day of the year and his first two days of the new year. Yale Hirsch, creator of Stock Trader’s Almanac, discovered this pattern in 1972.
A brutal December, marked by interest rate and recession fears, saw selling pressure continue to build throughout the month, dampening hopes of a typical year-end rally. However, the stock market is looking to turn a profit during the shortened trading week as Friday’s positive close is the first day of the period.
DataTrek’s Jessica Rabe points out that the S&P 500’s win rate and overall average performance are significantly better with less than 10% negative calendar years than those with higher losses.
“That said, if the index is down double digits like it is today, the chances of it going positive next year are essentially a coin toss, and returns aren’t as promising as if the S&P hadn’t fallen as much. 10%. less than that,” Rabe said in a recent note. “Had there been a real ‘Santa Claus rally’ this month, the S&P could have ended the year with his sub-double-digit decline.”
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Alexandra Semenova is a reporter at Yahoo Finance. follow her on her twitter @alexandraandnyc
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