Wall Street got the New Year off to a solid start Monday, driven by two of last year’s hottest performers, Tesla and Apple.
Investors scooped up shares of the electric vehicle maker after the company’s quarterly deliveries surged and cruised past analysts’ estimates.
And Apple hit a milestone, becoming the first company to hit $3 trillion in valuation.
Treasury yields jumped on expectations that the Federal Reserve will hike interest rates this year, but even that didn’t dampen investor spirits.
Wealth Consulting Group CEO Jimmy Lee says Wall Street has already factored that in.
“Until we get north of 2 1/2%-plus on the ten-year (Treasury), it's still a low-rate environment, and so I think investors have priced in a lot of what the Fed has signaled for. 2022 earnings are very robust as we know Fred and, and we're hopeful that the unemployment situation continues to improve and companies continue to knock the cover off the ball in terms of earnings.”
The Dow rose nearly 250 points. The S&P 500 added almost two-thirds percent, and the Nasdaq shot up 1.2%.
Even sharply rising cases of the Omicron variant didn’t drive away investors. Easing their fears: The Food and Drug Administration authorized Pfizer and BioNTech’s COVID-19 booster shot for children aged 12 to 15. Shares of both drug makers, however, fell.