Futures Resume Year-End Rally in Thin Trading; Tesla Jumps

OPINION: This article contains commentary which may reflect the author's opinion

The Dow Jones gained 188 points as heavyweight Tesla gained, while the rising number of daily Coronavirus cases, which have reached a record high in the past few days, calmed investors who hope the new variant of the virus is less deadly than the previous one.

Elon Musk, the CEO of Tesla, exercised all of his outstanding options for next year, meaning he will not be selling his stock. The stock gained 2.0 percent in premarket trading. After a 743 percent rise in 2020, shares rose 54 percent this year.

Researchers noted a reduced hospitalization risk for the Omicron variant, compared with the Delta strain, encouraging investors to look past the travel disruptions brought by the pandemic.

The United States carriers Delta Air Lines and Alaska Air Group canceled hundreds of flights again on Tuesday due to the daily U.S. infections in the United States exceeding their previous peak set in January.

As of 6:29 a.m. ET, Dow e-minis gained 8 points, or 0.02 percent, S&P 500 e-minis gained 3.75 points, or 0.08 percent, and Nasdaq 100 e-minis gained 32 points, or 0.19 percent.

S&P 500 shares fell on Tuesday in the lowest volume session of 2021, ending a four-day winning streak that saw record highs.

Seasonally, U.S. stocks tend to perform best at the end of a calendar year and at the beginning of the following year.

Participants cautioned, however, against reading too much into daily price movements as trading volume turnovers tend to be low during the holiday season, resulting in exaggerated price moves.


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