Wall Street poised to rebound after Omicron rout

A sign indicating Wall Street is visible in front of the New York Stock Exchange (NYSE) in Manhattan, New York, United States on December 28, 2016. REUTERS / Andrew Kelly / File Photo

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  • Travel, energy stocks rebound from recent lows
  • Nasdaq Futures Lead Gains, Tech Demand Strong
  • Rising futures: Dow 0.67%, S&P 0.82%, Nasdaq 0.97%

Nov. 29 (Reuters) – Wall Street indices were heading for strong gains on Monday as investors rushed to take advantage of large losses caused by viruses, pending further details on the severity of the Omicron coronavirus variant.

All three major indices fell between 2.0% and 3.5% on Friday after news of the coronavirus variant sparked a global sell-off, as countries introduced new travel restrictions over fears the Omicron variant would resists vaccinations and does not upset a nascent economic reopening. Read more

US President Joe Biden is due to brief the public on the variant and the country’s response later today, the White House has said. Read more

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The Nasdaq pre-market indicators rose the most among their peers, indicating investors likely favored pandemic-resistant tech stocks.

Travel stocks, among the hardest hit in Friday’s liquidation, posted strong pre-market gains. Shares of major airlines rose 0.7% to 3.5% after falling 3% to 9% on Friday.

Halliburton Co (HAL.N) jumped 2.4%, leading to gains among energy stocks as oil prices rebounded from Friday’s sell-off.

Major bank stocks rebounded from a rally in Treasury yields, but concerns over the Omicron variant have prompted investors to forecast a potential delay in interest rate hikes by the Federal Reserve next year.

“If Omicron were to become a major problem, it would have to be bigger than the Delta waves that we just went through. There is no doubt that the (Fed) cone would either be interrupted or delayed,” said Thomas Hayes, member. director of Great Hill Capital LLC, New York.

“You may have a little whiplash with the headlines in the coming weeks, but overall people need to be on display until the end of the year.”

As of 8:25 a.m. ET, Dow e-minis were up 232 points, or 0.67%. S&P 500 e-minis increased 37.75 points, or 0.82%, and Nasdaq 100 e-minis increased 155 points, or 0.97%.

Among other pre-market drivers, shares of casino operators Wynn Resorts (WYNN.O) and MGM Resorts International (MGM.N) fell 0.8% and 0.5%, respectively, following losses in their units. of Macau, who have been rocked by arrests for alleged links to cross-border gambling and money laundering. Read more

Advanced Micro Devices (AMD.O) rose 1.7% following report that electric car maker Tesla Inc (TSLA.O) has started using a new AMD chip in Model Y vehicles in China.

Tesla shares gained 1.7% after a report that Chief Elon Musk urged employees to reduce vehicle delivery costs.

Apple Inc (AAPL.O) gained 1.4% after HSBC raised its price target for the iPhone maker.

TJX Cos Inc (TJX.N) rose 2.6% after Citigroup upgraded shares of owner TJ Maxx to “buy” from “neutral.”

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Report by Ambar Warrick in Bangalore; Editing by Maju Samuel and Shounak Dasgupta

Our Standards: Thomson Reuters Trust Principles.

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