Overnight trading was a good one for stock futures. It came after a disappointing week in which investors were still trying to deal with Covid cases’ resurgence as well as the Federal Reserve’s shift towards easy monetary policies. Stocks traded higher on Sunday.

Futures on Dow Jones Industrial Average rose by 40 points S&P 500 futures gained 0.1% and Nasdaq 100 futures climbed 0.2%.

The major averages are coming off a negative week, with the S&P 500 declining 1.9%. Last week, the tech-centric Nasdaq composite dropped almost 3% as investors dumping high-flying growth stock on the promise of higher rates. Meanwhile, the Dow fell 1.7%.

Some investors hope for Santa Claus rallies into the year end, which would mean positive market performance during the final five trading days and the first two trading day of January. Stock Trader’s Almanac.

Adma Crisafulli (founder of Vital Knowledge) stated in a note that “on the one hand corners of the market were oversold.” However, “the aggressive ‘buy the dip’ mentality, which proved so profitable for the last 1.5+ years, especially in the high-multiple corners of the market, was underwritten by a tidal wave of stimulus that is now receding.”

The Fed last week announced an aggressive strategy to end its asset purchases and stated that it may raise interest rates by three times next year.

Despite the losses last week, the S&P 500 is still up 1.2% this month, bringing its 2021 gains to 23%. The tech-focused Nasdaq fell 2.4% in December due to technology name sales. Blue-chip Dow gained 2.6% in December.

As the holiday season nears, the omicronvirus is rampant all over the globe. It was discovered through tests in 43 out of 50 U.S. states and around 90 countries, and the number of cases is doubling in 1.5 to 3 days in areas with community transmission, the World Health Organization (WHO) said on Saturday.

The political front is Sen. Joe Manchin from West Virginia. said Sunday he won’t supportBiden’s administration has canceled the “Build back Better” plan. Manchin’s decision to kill the $1.75 billion climate and social spending bill will most likely endanger it.