US: Stocks tick higher while Treasury yields drop

[NEW YORK] US stocks post modest gains in the wake of another Wall Street all-time high on light volumes in the final days of the year. Treasury yields edged lower.

The S&P 500 rose after hitting its 70th record close of the year on Wednesday (Dec 29). The Nasdaq 100 was little changed.

Biogen shares fell after Samsung Group denied a South Korean media report that the US drugmaker was in talks to sell itself to the company.

The 10-year Treasury yield dropped back toward its 50-day moving average, while yields across most of Europe also dipped after Wednesday's global sovereign-bond retreat.

As the year draws to a close, investors are contemplating the implications of the fast-spreading Omicron coronavirus variant, decreasing stimulus and elevated inflation stoked by supply-chain bottlenecks. Key questions include whether Treasury yields will push higher and how much impetus is left in the equity bull market. Initial unemployment claims unexpectedly fell last week, illustrating still-solid labour demand despite the latest virus wave.

"Despite global surges in Covid cases, the markets are reflecting the new reality that Covid is here to stay albeit more on our terms than its," said Kevin Philip, managing director at Bel Air Investment Advisors. Next year, "we are facing less of a Covid-influenced world, and a return toward normalcy", he said.

Some of the main moves in markets: s The S&P 500 rose 0.1 per cent as at 9.31 am New York time. The Nasdaq 100 was little changed. The Dow Jones Industrial Average rose 0.3 per cent.

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