Stocks Start 2022 on a Positive Note

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Positivity about the new year gave indexes a mild jolt.

2021 and the holiday season have officially come to a close, and 2022 is in full swing. Obviously, the year rolling over isn’t a magic cure that instantly wipes all of the concerns we were putting up with before, but even so, a new year tends to bring a sense of optimism with it. This is why stocks and indexes saw a modest rise in value at the opening of the first trading session of the year this morning.

Thanks to investors feeling optimistic about the new year, especially on hopes that this is the year the COVID-19 pandemic is finally brought to heel, all three of the major stock indexes saw gains at the start of trading. The Dow rose by 0.3% in valuation, the S&P 500 gained 0.5% in valuation, and the Nasdaq beat both of them out with an impressive 0.8% rise in valuation. Stock rises in the first week of the new year are relatively common as investors seek to put their money to work for them in new pursuits. Of course, whether these gains will be sustainable remain to be seen, as concerns of inflation and the resulting decisions by the Federal Reserve could make or break whatever comes next.

“Just as for the economy as a whole, the market story for 2022 will be a return to normal. As hiring continues, spending grows, and businesses hire and invest, the economy will be normal. The government is normalizing policy on the same expectations. When you look at the macro picture, the overarching theme is 2022 will bring us back to something like normal,” Brad McMillan, chief investment officer for Commonwealth Financial Network, told clients in a note on New Year’s Eve.

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