- The Dow Jones Industrial Average rose 1.5%, to 35.441.21.
- The S&P 500 grew 1.6% to 4,639.79.
- The Nasdaq composite was up 2.2% at 15,304.73
Wall Street’s equity markets recovered from Monday’s pullback, as risk appetite returned, and recovered from a three day decline ahead of the Christmas holiday later in the week.
The Dow Jones Industrial Average rose 1.5% at 35,441.21, while the S&P 500 rose 1.6% to 4,639.79. The Nasdaq Composite climbed 2.2% to 15,304.73. The North American government bond markets continued to sell off and the 10-year US yields climbed 4.6bps. The DXY (-0.1%) was marginally weaker, while the major FX markets were strong against the dollar.
The relatively light data schedule for Tuesday included the current account deficit for Q3, the Philadelphia Fed’s nonmanufacturing index for December and weekly Redbook retail sales.
The light data schedule was highlighted when the Philadelphia Fed’s Mon-Manufacturing index fell to 28.3 from 46.1 in December. Other services data for December have already been released and showed solid growth despite the rise in COVID-19 cases. The ISM’s national reading will be released on January 5.
The current account deficit increased to $214.77 Billion in the third quarter, from $198.32 Billion in the previous quarter. Redbook reported that US same-store Retail Sales were up 16.4% year-over-year in the week ended December 18, larger than a 16% gain in the prior week.
The data schedule will be busier on Wednesday and on Thursday, before the holiday on Friday. Looking ahead, Gross Domestic Product growth, Consumer Confidence and Existing Home Sales reports will be released on Wednesday. Thursday’s releases include information on personal income and spending, Initial Jobless Claims, and New Home Sales.
Late in the day, US President Joseph Biden addressed the nation at 2:30 pm ET and detailed further efforts to combat the rise of COVID-19 cases. There were no surprises in the speech as the White House had already suggested that lockdown measures are not being considered at this point. Biden confirmed this, and encouraged everyone who could to get vaccinated to do so as soon as possible.