- Moving the markets
We’re still in the last two days of the peculiar Santa Claus rally, with the major indexes overcoming early weakness and then welcoming the new year with a rally, as the Dow scored another record close. None of this would have been possible without the usual short squeeze, which helped the bullish cause.
The value ETF RPV won the battle against the growth ETF RPG with a gain of 1.27% thereby continuing its domination from last year.
Traders are now betting on the idea that the economy is strong enough to overcome the latest surge in Covid cases, which pushed Apple into nosebleed territory by becoming the first company ever with a $3 trillion market cap. Not wanting to be left behind was Tesla, which stormed ahead by an amazing 13.5%.
Furthermore, optimism currently prevails that that both, the economy and corporate profits, are providing the necessary assistance to justify the ever-rising equity prices. That is until Fed policy changes and stronger anti-inflationary measures will have to be implemented.
Bonds got clobbered as yields surged with the 10-year jumping above the 1.60% level, while the 30-year spiked above 2% and way above the Omicron level. With interest rates on the move, the US Dollar joined the party by rising sharply.
And, as is usually the case, this combination of rising yields and US Dollar delivered a punch to gold, which dropped 1.45% but successfully defended its $1,800 level.Read More