Technology stocks had sold off last week amid a combination of concerns about the variant and the Federal Reserve’s hawkish tilt. U.S. stocks rebounded with equities around the world on optimism the omicron variant won’t derail global growth. Treasuries fell, sending two-year yields to the highest since March 2020. The S&P 500 jumped 1.8% to the highest level since the emergence of the new virus strain upended markets Nov. 26. Technology shares that bore the brunt of last week’s selloff led the rebound, with retail favorites including GameStop Corp. jumping at least 3% and the Nasdaq 100 gaining 2.4%. Chinese shares led a rally in emerging markets after the nation’s policy makers moved to expand support for the economy. Bitcoin rallied, the dollar was flat and crude surged above $71 a barrel in New York. Risk assets are recovering this week after initial data showed the surge in omicron cases hasn’t overwhelmed hospitals and as China’s moves help settle markets whipped by bouts of volatility. Technology stocks had sold off last week amid a combination of concerns about the variant and the Federal Reserve’s hawkish tilt. “This morning’s rally is being fueled by the belief that the omicron variant will not create many problems for the global economy … and that China has pledged measure to support economic growth,” wrote Matt Maley, chief market strategist for Miller Tabak + Co. “If those were the reasons why the market has seen such a big increase in volatility since Thanksgiving, we’d agree the worst is likely over and that investors should jump back into the market with both feet.” On the data front, the U.S. trade deficit narrowed while third quarter productivity fell. Private consumption was the largest contributor to the euro area’s most recent economic expansion. U.K. house prices hit an all-time high. And China’s exports grew faster than expected to a record on external demand and an easing power crunch. Meanwhile, research showed that a Covid-19 vaccine from GlaxoSmithKline Plc and Canada’s Medicago Inc. was effective against multiple variants of the disease. “In the wake of steep losses last week, the market mood has been notably more upbeat this week after several health experts across the globe, including the U.S.’s Dr. Anthony Fauci, have said omicron symptoms appear milder, . . . read the full article here.
Keywords: technology, optimism, week, markets, market, yield, rebound, bank, nasdaq, 24, rose, surges, fell, omicron, stocks, variant
LOC: Stoxx Europe
ORG: S&P, Treasury, City Index, MSCI World, Miller Tabak, Medicago Inc., GameStop Corp., GlaxoSmithKline Plc, Federal Reserve Bank, European Central Bank, the Federal Reserve’s, Kaisa Group Holdings Ltd., China Evergrande Group’s,
DATE: Friday, 10-year, Nov. 26, Thursday, two-year, Wednesday, last week, this week, March 2020, early days, Thanksgiving, last week’s, third quarter
NORP: British, Chinese, European, Japanese
TIME: morning, 9:54 a.m.
EVENT: the Winter Olympics
MONEY: 71, 1.1242
PERCENT: 0.2%, 0.3%, 0.4%, 1.2%, 1.8%, 2.2%, 2.3%, 2.4%, 0.73%, 1.44%, at least 3%
CARDINAL: 600, one, 113.67