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Dip Buyers Scoring Historic Win in Stocks That Defy Bond Warning

  • S&P 500 has best week in 10 months in face of Covid, Fed risks
  • Hedge funds return as buyers, while equity inflows continue
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Beyond the Bell 12/10/21

The twin issues that have recently rocked stocks -- the omicron coronavirus variant and a hawkish Federal Reserve -- did nothing this week to deter dip buyers, who powered American equities to their best rally in 10 months.

As the latest Covid-19 strain sparked fresh restrictions around the world and surging consumer prices kept the Fed on track to tighten, bargain hunters poured back in, powering the S&P 500 to an all-time high with gains in four of the five days. Hedge funds, who cut equity exposure at a ferocious pace during the November rout, re-emerged as buyers. Equity funds lured money for an 11th straight week. And bullishness crept higher in the options market.