The US stock market is off to the races on Tuesday, extending its rally from the start of the week as all three major indexes kicked the day off sharply higher.
The S&P 500 (SPX), Wall Street’s broadest gauge, opened up 1.3%, while the Dow (INDU) rose 0.9%, or 330 points. The Nasdaq Composite (COMP), which had lagged behind the others on Monday, gained 1.9%.
“Forget about a ‘turnaround’ for now, this Tuesday is looking more like a terrific one,” said analysts at Bespoke Investments of the rally.
It has been a volatile few weeks in the market, which was first shaken by worries about the Omicron variant, then by the Federal Reserve’s announcement that it might end its pandemic-era stimulus program sooner than expected.
But Monday’s ascent may have had more to do with technical factors: It’s the end of the year and the major indexes have decent returns to show for themselves. The S&P is up more than 22%, while the Nasdaq has climbed more than 18% and the Dow more than 15%. For investors rethinking where they want their money, this might be a time of shifting their portfolio around.
Next week Friday is also what’s known as “quadruple witching” when contracts on four types of financial assets expire. It’s often a period of some volatility, and investors may already be preparing for it.