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23.12.2021 01:36 PM
US Premarket on December 23: despite the end of the year, investors continue to take risks

Futures on US stock indices continued the growth observed yesterday, as investors stopped paying attention to concerns related to the Omicron strain. The strong fundamental statistics that were released yesterday on the US economy also supported investor sentiment on a rather optimistic note. At the time of writing, futures contracts for the Dow Jones Industrial Average index added 0.1%, and S&P 500 futures rose 0.15%. Futures on the Nasdaq 100 were also trading in a fairly good plus.

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Following the results of yesterday's regular session, the Dow Jones index rose by 0.7%, as a result of which its two-day rally exceeded 800 points. The S&P 500 index rose 1% to 4,696.56 and is only 1% below its historical high. The Nasdaq Composite rose 1.2%.

The largest growth yesterday was marked by Tesla's securities, which jumped by 7% at the end of the day after CEO Elon Musk announced that he had achieved his goal of selling 10% of his shares for tax reasons. Investors ignored the news that US automotive safety regulators have launched an official investigation into the safety of 580,000 Tesla cars sold since 2017. In a statement, the National Highway Traffic Safety Administration said that, according to preliminary estimates, we are talking about various Tesla cars - Model 3, S, X, and Y 2017-2022 model year. All because of the introduction of the Tesla Passenger Play function, which can be used even while driving. Previously, the game function was turned on only when the car was not in motion.

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Also yesterday it became known that the FDA has issued a permit for the use of Pfizer tablets against coronavirus - the first oral antiviral agent. The manufacturer's shares rose by about 1% at the end of the day.

Another positive news on the fight against Omicron: laboratory results showed that the third dose of the AstraZeneca Plc vaccine significantly increased the level of antibodies against the new strain.

Investors continue to return to the stock market as the outlook for the global economy remains positive. The economic recovery will continue, albeit not at such a high pace as it was predicted before the appearance of Omicron. The high level of vaccination of the population in developed countries allows us to believe in the best.

Today we are waiting for a fairly large volume of fundamental statistics on the American economy. It will all start with a change in the volume of orders for long-term goods and the level of income and expenses of the US population. If the indicators increase, the stock market may react with growth, as this will spur inflationary growth and put pressure on the Federal Reserve System to make more active changes in monetary policy. A little later, data on the number of initial applications for unemployment benefits and the consumer sentiment index from the University of Michigan will be published.

Let's run through the premarket:

Tesla's securities have already jumped 1.43% in the premarket for the reasons I mentioned above, and they feel confident above $ 1,000 per share.

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Pfizer has gained 0.5% so far, but the prospect of a repeat test of the $60 price remains quite high.

As for the technical picture of the S&P 500

The breakthrough of the important support of $4,665 and consolidation above the level took place yesterday. In case of a return of pressure on the index, this level will provide support. Its breakdown will bring the index down to $4,611, below which it was not possible to breakthrough yesterday. There are larger lows below it: $4,551 and $4,512, to which we can return very quickly in such a market if the situation with the coronavirus worsens. Now an important task for buyers of a trading instrument is to go beyond the resistance of $4,718. A breakdown of this range will return even more interest in the shares, which will lead the trading instrument to the maximum of the year - $4,751.

Jakub Novak,
Analytical expert of InstaForex
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