US Stocks Regain Footing After Friday 11/29 09:31
Stocks rose broadly on Wall Street Monday as markets regain their footing
following a big stumble on Friday on worries about the spread of the new
variant of the coronavirus.
(AP) -- Stocks rose broadly on Wall Street Monday as markets regain their
footing following a big stumble on Friday on worries about the spread of the
new variant of the coronavirus.
The S&P 500 rose 1% as of 9:44 a.m. Eastern. The benchmark index slumped
2.3% on Friday for its worst day since February. The Dow Jones Industrial
Average rose 192 points, or 0.6%, to 35,073 and the Nasdaq rose 1.2%.
Technology companies made some of the biggest gains. Apple rose 2.2% and
Microsoft rose 2.4%. A wide range of retailers and other companies that rely on
consumer spending also made solid gains. Amazon rose 1.3% and Nike rose 1.4%.
Travel-related stocks, which suffered on Friday, regained some ground.
Marriott rose 3.2% and Expedia rose 2.7%. U.S. crude oil prices jumped 5.7%.
Like stocks, the bond market and other corners of Wall Street also steadied
themselves following Friday's knee-jerk reaction to run toward safety and away
from risky investments. With vaccines in hand, the world may be in better
position to weather this newest potential wave. Plus, Friday's market moves may
have been exacerbated by many professional traders taking the day off following
"So as the initial shock wears off a bit, traders could be eyeing
opportunities and coming to terms with the possibility of some short-term
volatility associated with a potential new wave," Chris Larkin, managing
director of trading at E-Trade Financial, said in a statement.
The yield on the 10-year Treasury climbed to 1.55% from 1.49% late Friday,
recovering nearly half its steep slide from that day. It tends to rise and fall
with expectations for the economy's strength and for inflation.
The yield on the two-year Treasury, meanwhile, climbed as traders
reconsidered guesses made on Friday that omicron would push the Federal Reserve
to delay raising interest rates. It rose to 0.54% from 0.50% late Friday.
Investors are now pricing in a 67% probability that the Fed will raise rates
from their record low of nearly zero by mid-June. On Friday, when omicron
worries raised questions about whether the economy will need more help through
low rates, investors cut that probability down to 62%.
Despite the reversal from Friday for yields and other areas of the market,
they're still below where they were before concerns about omicron blew through
Consider the VIX, an index that measures how worried investors are about
upcoming drops for the S&P 500. It eased by more than 14% to 24.44, but it's
still well above where it was before Thanksgiving, at 18.58.
The broader market has been gaining ground since early in 2021 when vaccines
were rolled out in an effort to fight the virus pandemic that stunned the
global economy in 2020. Much of the concern for investors has focused on rising
inflation potentially crimping what has been a solid recovery. COVID-19 has
remained a lingering concern.
A surge in cases from the delta variant stunted consumer spending and
worried investors over the summer. The latest threat from COVD-19 comes from
the omicron variant, which was first detected in South Africa and appeared to
be spreading across the globe. The European Union and the U.K. both announced
travel restrictions from southern Africa on Friday. The U.S. also put travel
restrictions on those coming from South Africa as well as seven other African
The threat of a new surge in cases comes threatens stun the global economy
just as people are planning to travel for the holidays and businesses are
relying on holiday shoppers. It could also complicate planning by central banks
that are deciding when and how to withdraw stimulus measures that have helped
keep interest rates low and aided stocks.