In 2022, the US stock market rose sharply at the beginning of the year, Tesla's stock price soared, and Apple's market value reached $3 trillion

Text/Sergei Klebnikov

Image source: Visual China

Case Summary:

On Monday, U.S. stocks started the new year with big gains. Despite the surge in COVID-19 cases during the holidays, investors are optimistic that the U.S. economy will continue to recover, with stocks rallying sharply.

Key facts:

The Dow Jones Industrial Average rose about 250 points, or 0.7 percent, compared with the S&P 500 up 0.6 percent and the Nasdaq Composite up 1.2 percent.

U.S. stocks typically rise in the first week of the new year, according to a bank of America report that averaged about 1.6 percent gains and has seen gains in 11 of the past 13 Gregorian new years.

Tech giant Apple, which became the first company to have a market capitalization of more than $3 trillion, rose 2.5 percent on Monday, up nearly 34 percent last year.

Shares of electric car maker Tesla, which rose more than 13 percent, said it delivered 308,600 vehicles in the fourth quarter of last year, well above analysts' expectations.

Shares of some other established automakers also rose sharply, with Ford and General Motors both up more than 4 percent.

During the holidays, airlines faced thousands of flight cancellations due to a surge in COVID-19 cases. Airline shares soared on Monday as investors shrugged off worries, with shares of Delta Air Lines and United both rising more than 4 percent.

Key Background:

The U.S. stock market just ended a glorious year last week before Monday's gains. In 2021, the S&P 500 is up nearly 27 percent, while the Dow Jones and Nasdaq are up about 19 percent and 21 percent, respectively.

Important Remarks:

Bespoke Investment Group said in a recent report: "It's a new year, but the situation now looks a lot like what it was in 2021, with the market in rebound mode and the number of COVID-19 cases continuing to surge. ”

Notes:

Uncertainty surrounding COVID-19 and the fast-spreading Omiljung variant continues. The surge in COVID-19 cases during the holidays has led to thousands of flight cancellations, and some businesses and schools are considering temporary closures. High inflation levels will also dominate market discussions in 2022, as investors expect the Fed to continue to adjust monetary policy this year and raise interest rates several times this year to curb rising prices.

Big number: $32.1 billion

That's an increase in billionaire Elon Musk's fortune jumping on Monday as stock of his electric car maker Tesla Soared. Forbes estimates that Musk, the world's richest man, is now worth $303.7 billion.

Translated by Vivian School Li Yongqiang