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HomeNewsBusinessGains in stocks on the first trading day of 2022

Gains in stocks on the first trading day of 2022

As investors tried to salvage the final two trading days of a dismal year for markets, U.S. stocks surged higher on Thursday, driven by a comeback across technology stocks.

Apple (AAPL), Amazon (AMZN), and Alphabet (GOOG, GOOGL), three megacap tech giants, all rose 2.8%, helping to boost the overall market following a sell-off over the previous two days. Apple fell beneath $130 this week as a result of the risk-off trade, which investors have identified as a crucial technical threshold.

The Dow Jones Industrial Average (DJI) increased by over 350 points, or 1.1%, while the S&P 500 (GSPC) climbed 1.7%, ending two days of losses. The heavily tech-focused Nasdaq Composite (IXIC) rose 2.6%. The actions follow a trading session where all three major averages lost more than 1% of their value.

Amazon, along with Meta (META) and Netflix (NFLX), became the third FAANG+ company to erase its recent gains and close below its March 2020 COVID crash low on Tuesday.

Investors are still keeping an eye on Tesla (TSLA), which on Wednesday ended a seven-day losing skid following a multi-session selling frenzy sparked by worries about the closure of its Chinese manufacturing. On Thursday, shares increased 8.1%.

After being upgraded by CFRA analyst Kenneth Leon from Sell to Buy in a two-step process, Netflix (NFLX) increased 5.1%, climbing from a seven-week low.

Following pressure placed on electric carmakers during the week, Rivian (RIVN), Lucid (LCID), and Nio (NIO) all recovered alongside Tesla.

The price of eggs increased due to inflation and the avian flu, while Cal-Maine Foods (CALM) posted fiscal second-quarter results that above analyst projections. Despite this, shares of the egg producer fell 14.5%.

The stock of biotech startup Kala Pharmaceuticals (KALA) increased by 99% on Thursday, continuing a rise that began on Wednesday when it quadrupled after the Food and Medicine Administration approved the company’s application for an experimental new drug to treat a rare eye illness. In terms of economic data, the Labor Department reported on Thursday that the number of applications for unemployment insurance increased to 225,000 in the week ending December 24 from the prior week’s figure of 216,000. The result partially matched the consensus predictions of the economists surveyed by Bloomberg.

The U.S. benchmark West Texas Intermediate (WTI) crude futures settled at $78.39 on Thursday, continuing oil’s recent decline in other markets. The U.S. dollar index and U.S. Treasury yields both decreased.

Selling pressures that began in December and persisted into the month’s final trading days disrupted the annual year-end rally that usually takes place in the final trading days of the year due to worries about rising interest rates and an impending economic slump. According to AXS Investments CEO Greg Bassuk, “several reasons have traditionally generated the typical atmosphere conducive to year-end stock gains, such as the investment of holiday bonuses, a seasonal optimism among consumers and investors, and tax considerations.” “Investors won’t be receiving any holiday gifts this year for their portfolios, though, with 2022’s poor stock and bond performance anticipated to persist into 2023, along with ongoing inflationary fears, uncertain Fed policies, and lingering geopolitical tensions.”

The greatest decline in global and U.S. stock prices since the 2008 financial crisis is still expected.

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Patrick Huston
Patrick Huston
As a senior editor, Patrick is a professional who is in charge of putting out business news. As a senior editor, Patrick is likely to be in charge of the duties of junior editors and writers, make sure the content is correct and high-quality, and work with other departments to make sure the business news is published on time. Patrick knows a lot about business and the latest market trends. He uses this knowledge to choose and edit stories that are both interesting and useful to readers. He also works with reporters and analysts to come up with insightful pieces that help readers keep up with the latest business news. Patrick is a very important part of keeping the public informed and interested in important business issues. He is passionate about journalism and strives for excellence.
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