Dow Tests Six-Day Rally, But Omicron Concerns Linger

U.S. equity futures edged cautiously higher Wednesday, putting the Dow on pace for its sixth consecutive gain, as investors continue to edge stock markets higher, while shrugging off Omicron concerns, over the final full trading days of the year.

Global oil prices were marked at a one-month high in overnight trading, with WTI futures for February delivery trading just under $76 a barrel, as investors grow incrementally more bullish on growth prospects once the current Omicron wave dissipates.

However, trading volumes remain light, with just over 7.55 billion shares changing hands on U.S. exchanges Tuesday, a level representing around two thirds of the recent 20-day average.

Still, with overall U.S. Covid cases hitting a record high 258,312 over the past seven days, lead by gains in New York, California and Texas as the Omicron variant retains in dominance, investors are likely to remain cautious until more data emerges to confirm earlier studies that suggest it carries milder symptoms and a reduced risk of hospitalization.

On Wall Street, futures contracts tied to the Dow Jones Industrial Average are indicating a 10 point opening bell gain, while those linked to the S&P 500 are priced for an 4 point advance after failing to reach a 70th record close of the year last night.

The tech-focused Nasdaq Composite is looking to open 35 points higher as benchmark 10-year Treasury note yields rise to 1.492% in overnight trading.

Pre-market volumes for individual stocks were also light on Wednesday, although Tesla remained active, rising 1.5%, after founder and CEO Elon Musk exercised his final batch of stock options, set to expire next year, while selling another $1.02 billion shares in the world’s most valuable carmaker.

In Europe, the region-wide Stoxx 600 hit a fresh all-time peak of 490.10 points earlier in the session, taking its year-to-date gain to around 22.5%, while Britain’s FTSE 100 traded at a near two-month high of 7,432.45 points in mid-day dealing in London.

Overnight in Asia, the region-wide MSCI ex-Japan benchmark slipped 0.3% into the close of trading, while the Nikkei 225 in Tokyo ended the session 0.56% lower at 28,906.88 points.

This article was originally published by TheStreet.