Equities clawed back some of their recent losses on Tuesday with the major indices up more than 1.5% at the high of the session. The tech-heavy NASDAQ Composite led the move with a gain of more than 2.25% as fear of the Omicron variant subside. The risk of Omicron remains but any impact it may have on the economy may be getting priced into the market. The technical outlook for the S&P 500 remains bullish although volatility is expected to remain high.

Thursday will be the busiest day of trading for the week with more than a dozen economic reports due out before the Christmas Holiday. The key reading of the day will be the monthly income and spending data to include the PCE Price Index. The PCE Price Index is expected to accelerate on a MOM to and YOY basis and may come in hotter than the consensus estimate.