Wall Street closed 2021 at near-record levels thanks to good corporate results.
In its last session of the year, the New York Stock Exchange almost reached all-time highs in a day of the low trading volume.
Wall Street closed in 2021 with the last session in the red but close to record levels thanks to accommodative monetary policy and good corporate results in the United States. However, the omicron variant of the coronavirus raised concerns about the recovery.
In its second year of epidemic disease, the New York Stock Exchange placed the gold medalist on the selected S&P 500, scoring 70 records and gaining 21.4%, 26.9% more than the selective Nasdaq, and that the Dow Jones de Industrials, with 18.7%.
In Europe, Paris saw an increase of 29.21%. Milan wins 23%; Frankfurt 15.79%, London 14.59%, and Madrid 7.93%. In Asia, Tokyo rose 4.44%, and Hong Kong was down 13.01%, with Evergrande's potential bankruptcy.
The winning sectors for the year in the S&P 500 were energy (48.5%), real estate (44.6%), and technology (34.4%). The most moderate were public services (16%) and essential goods (15.5%).
The first half of the year was brilliant, with seven consecutive months of gains and a shower of records driven by good quarterly results from the major US firms, including large banks.
However, two factors have repeatedly sown the seeds of frustration: rising inflation and fears of a tightening of the Federal Reserve's monetary policy following extraordinary stimulus to end the crisis.
Strong demand, disruptions in the global supply chain, and labor shortages are among the reasons for inflation, which has reached a level not seen in almost four decades.
The US central bank began to withdraw the stimulus by reducing the purchase of debt and hinting that it would raise interest rates next year. Analysts anticipate up to three increases.
The coronavirus has remained ubiquitous, with the omicron variant causing some volatility at the end of November due to the global rebound in continuing cases.
With the economic recovery and the resumption of international travel in October, high demand for fuel in the face of limited supply pushed a barrel of Texas crude to exceed $ 85 for the first time in seven years.
The price has fallen since then and stands at $ 75.21, not so much because of the coordinated use by the US and several countries of their strategic oil reserves, but because of omicron.
Even so, Texas ends the year with a revaluation of 55%, its highest accumulated increase since 2009.
The debt market has continued its rally after the first year of the pandemic. The 10-year Treasury bond began in January with a yield of less than 1% to rise to 1.5% as of today.
This is the most significant annual rise in benchmark bond yields since 2013.
On the other hand, the cryptocurrency market has followed a dazzling path before hitting the brakes this month. Bitcoin reached an unprecedented price of $ 69,000 in early November.