Wall Street looks set to rebound from its worst three-day skid in more than a month Tuesday as investors adopt a more optimistic take on the recent Omicron variant surge.
U.S. stocks rebounded firmly Tuesday, following their worst three-day performance since September, as investors grapple with fading holiday liquidity amid ongoing uncertainty over the impact of the Omicron surge and lingering interest rate concerns.
Growth assets were in focus in overnight trading, however, as early data showing the rapid increase of Omicron infections — now the dominant strain in the United States — is paired with relatively mild symptoms and hospitalization rates, suggesting a potentially limited impact on the global economy in the months ahead.
Still, myriad corporate and entertainment cancellations, including a pause in competition from the National Hockey League, are a reminder of the variant’s potency.
In fact, Joe Biden will outline administration’s expanded effort to slow the acceleration of Omicron infections in the world’s largest economy in a televised address later today, highlighted by plans to distribute around 500 million Covid testing kits while expanding testing sites in major cities.
Amid the Omicron headlines, however, tech stocks and oil prices bounced higher, while benchmark 10-year Treasury bond yields advanced to 1.482% and the dollar index eased from multi-week highs in a series of overnight asset price move that typically precedes a solid day on Wall Street.
To that point, the Dow Jones Industrial Average was marked 385 points higher in the opening hour of trading, while the S&P 500 booked a 35 point gain.
The Nasdaq Composite is also looking positive, rising 115 points after the tech-focused benchmark closed 7.6% south of its all-time high last night.
In terms of individual stocks, Micron Technology (MU) – Get Micron Technology, Inc. Report shares surged 8.7% after the chipmaker posted stronger-than-expected first quarter earnings and a solid near-term outlook.
Nike (NKE) – Get NIKE, Inc. Class B Report bounced 5.8% higher after the world’s biggest sports apparel company topped Wall Street forecasts for its second quarter earnings, thanks in part to soaring sales in its home north American market.
In overseas trading, Europe’s region-wide Stoxx 600 was marked 1.12% higher my mid-day trading in Frankfurt, with tech and energy stocks leading the advance while Asia’s MSCI ex-Japan index was marked 1% higher and the Nikkei 225 in Tokyo closed 2.1% to the good at 28,517.59 points.
Oil markets also rebounded from yesterday’s slump, the biggest in more than a month, with WTI futures contracts for February delivery rising $1.23 to change hands at $69.84 per barrel.
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