Stocks kicked 2022 off at record highs
By Anneken Tappe, CNN Business
Start the year how you intend to spend it, right? For the Dow, that means at all-time highs.
The index finished up 0.7%, or nearly 250 points, on Monday, logging a new record high on the first trading day of 2022.
Similarly, the S&P 500, the broadest measure of Wall Street, closed at a record, up 0.6%.
The Nasdaq Composite still has a little more to go until the all-time high it set in November. The tech-heavy index closed up 1.2%.
It was an eventful enough day for investors coming back from the holidays.
Apple briefly topped a market value of $3 trillion on Monday, making it the first publicly traded company to reach that big a price tag.
The company’s shares closed 2.5% higher.
Apple’s market value first crossed the $1 trillion threshold in August 2018 and passed $2 trillion in August 2020.
Meanwhile, CNN Business’ Fear & Greed Index, which measures seven indicators of Wall Street’s mood, is showing signs of greed again. It flashed fear just over a week ago and was in extreme fear territory a month ago.
It was a strong start to the year for stocks, but there are some challenges ahead.
“2022 will carry with it a new set of challenges. Central banks have made it clear the process to normalize monetary policy is underway as asset purchase programs are being wound down and interest rates begin to move higher,” said Michael Reinking, senior market strategist at the New York Stock Exchange.
Then there’s the fate of President Joe Biden’s Build Back Better plan, the recent surge in Covid-19 infections, ongoing supply chain issues and high inflation.
“Broadly speaking the operating environment over the last two years has been more challenging than any other time in recent history, and management teams have risen to the occasion,” said Reinking. “Thus far, companies have been able to pass on or mitigate the cost pressures, and margins have remained near record levels. This will be a focal point throughout the year.”
–Paul La Monica contributed to this report
The-CNN-Wire
™ & © 2022 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.
