Tuesday December 2, 2021

// October 26th, 2021 // Daily News

Dow rebounds by 500 points as market volatility from omicron continues

PUBLISHED WED, DEC 1 20216:07 PM ESTUPDATED MOMENTS AGOMaggie Fitzgerald@MKMFITZGERALDPippa Stevens@PIPPASTEVENS13WATCH NOWVIDEO00:52Stock futures rise after sell-off sparked by first U.S. omicron case

Stocks rebounded on Thursday from a sell-off in the previous session spurred by the arrival of the latest Covid variant on U.S. shores.

The Dow Jones Industrial Average gained about 520 points, helped by a 3% uptick in Boeing’s stock. The S&P 500 rose more than 1%. The technology-heavy Nasdaq Composite gained 0.3%. The small-cap benchmark Russell 2000 added 1.4%.

Airline, casino and energy stocks led the gainers on Thursday, rebounding from Wednesday’s sell-off. Delta Air Lines rose 4%, MGM Resorts added 4.5% and Hilton Worldwide gained 3.9%. Norwegian Cruise Line added 5%.

Dow component Boeing’s shares jumped 3.6% after China cleared the 737 Max to return to fly.

On the negative side, Apple’s stock dropped 2% after Bloomberg News reported the tech giant is experiencing slowing iPhone demand ahead of the all-important holiday season.

Investors continue to watch for developments on the new omicron Covid-19 variant, with uncertainty around its rate of transmissibility and fears that it could evade vaccines.

The Biden administration reacted to the news that an omicron case had been reported in California by asking businesses to proceed with vaccination requirements, even though the administration’s mandate was halted in courts pending review. The White House also tightened travel rules, requiring inbound passengers to be tested within 24 hours prior to departure.

A second case of omicron was revealed on Thursday. Minnesota public health authorities reported the second U.S. case of the omicron Covid variant in a resident who recently returned from New York City.

“While it is nice to see a rally this morning, I am not sure investors should put much meaning into it,” said Jim Paulsen, chief investment strategist for Leuthold Group. “Fear and greed will dominate activity as investor worries oscillate between concerns the worst is not yet over and anxieties of missing out on any recovery.”

The possibility of the Federal Reserve tapering its asset purchasing program at a faster-than-expected pace is also in focus.

Fed Chair Jerome Powell told U.S. House members on Wednesday that the “economy is very strong and inflationary pressures are higher, and it is therefore appropriate in my view to consider wrapping up the taper of our asset purchases, which we actually announced at the November meeting, perhaps a few months sooner.”