Dow Jones Hits 36000 Points

US stocks rose for the third straight session on Thursday, the S&P gained 0.7% marching towards intraday record high of 4,743 hit on November 22nd, the Dow Jones added more than 200 points and the Nasdaq Composite jumped 0.8% as fears that the omicron variant would derail economic growth receded and President Biden said the US will not go back to lockdown.

A South African study confirmed again the omicron variant is less severe than previous strains, but more infectious. On the data front, US consumer spending rose for the 6th straight month but slowed from October while the annual PCE inflation rose to 5.7%, the highest in 39 years.

Also, jobless claims remained below pre-pandemic levels last week. All three averages are on track to end the week higher. US markets are closed Friday for the Christmas holiday.

Americans kept spending last month, which is a plus for the economy. But how they spent matters more.

The good news for Wall Street, and the entire economy, was from the Commerce Department reporting on Thursday that consumer spending rose a seasonally adjusted 0.6% in November from October and also revised its October spending figures higher.

Even after taking into account how worries about the Omicron variant are now depressing some activity, it looks as if the economy will put in very strong momentum.