From the Wall Street Journal’s "Stocks Look Poised to Recoup Some Losses After Selloff" posted early Tuesday:
U.S. stock futures rose, resuming the seesaw action that has become the signature of markets since the emergence of the Omicron Covid-19 variant...
Investors have grappled with a mix of concerns heading into the end of the year. The rise in Omicron cases has spurred concerns about global growth and whether it will prolong the global supply-chain disruptions that have added to inflation. However, signs that vaccine boosters offer protection against Omicron have bolstered hopes that its impact on growth can be mitigated.
Meantime, hopes were raised that a version of the U.S.’s $2 trillion spending package could still be passed, after Senate Majority Leader Chuck Schumer said Democrats would take up the legislation early next year, despite opposition from Sen. Joe Manchin.
“It seems we’re continuing to get this risk-on, risk-off environment. Investors are kind of torn,” said Louise Dudley, an equities portfolio manager at Federated Hermes. Despite heightened uncertainty, investors are still incentivized to buy stocks, as government bonds don’t offer enticing yields, she said.
Charts: Yahoo!Finance still sees a bearish relative strength index pattern. Max pain stays at $165 with a call mountain at $175 and a growing peak at $180.