Stocks Set for Active Start to 2022 – Omicron Expectations

U.S. stock futures point to a positive start to the year on Wall Street. Investors are avoiding the potential economic impact of Omicron on the economy and profits. U.S. stocks were higher on Monday. Investors focused on reopening Carnival, Alaska Air Lines, and Norway Cruise Lines supplies.

E.T., futures contracts related to Dow Jones Industrial Average indicated a 161-point opening profit. While the price of the S&P 500 increased by 26 points. The futures tied to the Nasdaq Composite showed a 101-point increase at the start of trading; As a benchmark, 10-year Treasury bond yield was maintained at 1.5%.

Positive momentum will follow the firm closure of 2021. The S&P 500 grew by almost 27% during the year. The Dow and the Nasdaq Composite also posted significant earnings. Shares fell slightly on Friday. However, the Dow and S&P 500 were positive for the last week of the year.

Reopening stocks were higher in pre-market trading. Alaska Air rose 2.3%. The Carnival and Norwegian Cruise Lines accounts increased by about 2% each. At the same time, some stocks from the COVID-related workhouse have also risen. These include Walmart, Home Depot, Clorox, which accounted for more than 1%.

Tesla saw a stock rise in the fourth quarter and year-over-year, with supply forecasts exceeding expectations. Shares of major automakers, including Ford and General Motors, also saw growth in stocks, up 1.6% each. Friday’s quiet and light trading session ended a busy year in the markets.

Stocks Active Start in 2022

By 2022, experts and analysts expect investors to take a more cautious look at current market achievements; Amid the constant threat of the Omicron COVID-19 variant, as well as growing expectations; That the Federal Reserve and other central banks will pull back on the stimulus, which has continued to reduce cash flow in the global economy since March 2020.

Economists predict that 2022 will be a year of slower growth and inflation. This will significantly change what investors are used to after the 2020 pandemic-induced recession. Against this background, expectations should likely be for the overall effectiveness of weak defense growth sectors, stock market payback, and higher volatility.

This, in turn, is likely to lead to a reassessment of such sectors. Such as tourism and travel; Which were replaced by an increase in Omicron; As well as other industries such as manufacturing that have global shortages of semiconductors; They were also affected by the worldwide supply chain disruption.

Experts expect that while supply chains are still strained. In 2022, inflation should be downward, especially in the U.S. The first week of the year will be loaded with economic data. The report on the principal works of December should be published on Friday morning. On Monday, investors will receive updated reviews on production activities and construction costs.

Omicron Expectations

Last year was stunning for investors. In 2021, the S&P 500 grew by 27%. The index regularly reached new highs all the time. Many shares made even greater profits. Investors benefited from both the Federal Reserve and corporate profits. 2022 promises convincing investment opportunities for investors.

However, inflation is likely to remain a problem this year despite the positive dynamics. Consumers have seen prices rise in most critical sectors of the economy. These include clothing, food, energy, essentials.

Whatever it is, the beginning of a positive year means a lot. With the reduction of inflation and the global pandemic regulation, it will be possible to suggest more positive changes this year. However, we will find out what 2022 is preparing for us and what fate awaits the promotions during the year. The fact is that this year promises many hopes and positive changes.