Wall Street extends rally
By Anneken Tappe, CNN Business
The US stock market was off to the races on Tuesday, extending its rally from the start of the week as all three major indexes were sharply higher.
The S&P 500, Wall Street’s broadest gauge, finished the day up 2.1%, while the Dow rose 1.4%, or just under 500 points. The Nasdaq Composite, which had lagged behind the others on Monday, gained 3%.
“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: The end of the year is approaching and the major indexes have strong returns to show for themselves. The S&P is up 25%, while the Nasdaq has climbed nearly 22% and the Dow has gained about 17%. Investors rethinking where they want their money, may want to consider shifting their portfolio around.
Next week will bring what’s known as “quadruple witching” on December 17, 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.
Correction: A previous version of this article cited the incorrect date for “quadruple witching.” It is December 17.
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