Hedge funds are the biggest sellers in December, having been affected by the lower-performing software company stocks with close-to-close moves in the Nasdaq 100 at around 1.4%.
- A three-day price surge in the S&P 500 to over 26% in 2021 reduced sell pressure among investors, but concerns remain around Omicron and the rising inflation.
- The head of equity derivatives and cross-asset products at Cantor Fitzgerald, Eric Johnson, says that a low selling supply, and the price surge could be short-lived.
- Johnson also points out that the tighter federal policy could mean that the upward trajectory may be unsustainable.
- The positive sentiments on the economic growth and the report that the Omicron Covid-19 variant could be less severe have seen the S&P 500 rise to about 70 all-time highs in the year.
Investors are taking a conservative approach to risk-taking with stock performance for firms with stable income in healthcare and utilities surging the most at 7% in December.
S&P 500 is up +0.62%