The downward trend from the previous week continued Monday, with the S&P 500 Index posting its first three-day losing streak since May. On indicators that the new omicron version of the coronavirus might not be as devastating as anticipated, equities recovered from the previous week's losses. With markets set to close on Friday, trading volumes were low ahead of the forthcoming Christmas break.
However, some upbeat news on both fronts aided the market's turnaround on Tuesday. Moderna revealed early data demonstrating that their booster shot enhanced the number of antibodies capable of targeting the omicron variant significantly. President Joe Biden's assurances at a news conference on Wednesday that there were no preparations for "shutdowns or lockdowns" in reaction to the latest wave of coronavirus cases seemed to reassure investors even more. Finally, the US Food and Drug Administration gave Pfizer and Merck's medicines emergency approval for the treatment of COVID-19.
The economic data released this week was mostly positive. Durable goods orders increased 2.5 percent in November, exceeding expectations and posting the strongest result since May. Consumer sentiments also outperformed predictions, and surveys suggested that inflation expectations peaked in November along with petrol prices. The Bureau of Economic Analysis revised the third-quarter gross domestic product slightly higher in the final reading. The negative spot was new house sales, which came in lower than projected in November and were revised lower in October.
The S&P 500 closed the week with 3.01%. One Signal Xpress and Xpert returned 2.09% and 2.66% respectively. On a year-to-date basis, One Signal is still outperforming its reference index by 1.58% for One Signal Xpress and 5.42% for One Signal Xpert.