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US Stocks Rebound as Concerns About the Omicron Variant Ease
US stocks climbed Monday following a significant selloff on Friday when all three major indexes fell by over 2%. Investors were concerned about the Omicron variant of COVID-19 and what impact it could have on the global economy. After the variant was discovered in South Africa, governments in Europe, Asia, the Middle East, and the Americas placed restrictions on travel from this area.
As of yesterday, the variant had not yet been detected in the US though it has been found in the UK, Australia, Germany, and several other parts of Europe and Asia. Israel and Japan closed their borders to foreign travelers until more information about the variant is known. Yesterday, President Biden announced that for the moment, no lockdowns will be put in place in the US. Wall Street breathed a sigh of relief and stocks rallied.
Oil prices also bounced back after falling by over 10% on Friday. This marked the most significant one-day drop for oil prices since April 2020. Travel stocks, which took a hit on Friday, also recovered somewhat yesterday. Additionally, the 10-year Treasury yield climbed back above 1.5% yesterday. On Friday, many flocked to safer investments, which caused rates to drop.
Scientists still have a number of unanswered questions about the Omicron variant, including how transmissible it is, how severe its symptoms are, and how effective current vaccines will be against it. Vaccine makers including Pfizer (PFE), Moderna (MRNA), and Johnson & Johnson (JNJ) are working quickly to learn more about the new variant and are investigating how to adapt their shots, if need be.
In company-specific news, shares of Ebay (EBAY) were down after the ecommerce platform announced it is buying the sneaker authentication tool Sneaker Con Digital. In contrast, Coinbase’s (COIN) stock price climbed as it recovered from a crypto selloff on Friday. On the whole, the Dow Jones Industrial Average rose about 237 points, or 0.7%.
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- The Consumer Confidence Index for November will be released. This report shows how optimistic or pessimistic consumers are feeling about the economy and their personal finances.
- Opendoor Technologies, a digital platform for selling residential real estate, will share its latest results. Zillow recently exited the home flipping industry, due to significant losses, leaving an opportunity for its former competitors, like Opendoor.
Career Tip of the Day
"If you want to go far in your career you must be willing to become uncomfortable; you must be willing to face what created your fear and decide to overcome the beliefs that circle it.”
Ashley Stahl, Career Expert at SoFi