Positive news on the pandemic front boosted sentiment. The Food and Drug Administration on Wednesday granted emergency use authorization for Pfizer's Covid pill, the first antiviral drug against the virus for at-home use. Pfizer shares gained 1%.
"For the first time seemingly since Thanksgiving, markets appear to finally be calming down as trading activity subsides ahead of the Christmas holiday," said Chris Hussey, a managing director at Goldman Sachs. "The triple headwinds of rising virus cases, a more hawkish Fed, and elusive fiscal stimulus are absorbed into risk-asset prices."
December, normally the calmest month for markets, has so far been the most volatile month of 2021, according to Bespoke Investment Group. The firm looked at the S&P 500's average absolute daily change since 1953.
Wall Street's "fear gauge," the Cboe Volatility Index, spiked above 35 earlier this month and has traded around the 20 threshold. It dipped as low as 18.59 on Wednesday.
