The broader markets gained on Tuesday as risk-on sentiment returned ahead of the Christmas holiday. Investors are piling into the beaten-up stocks after a three-day omicron-led sell-off. The Dow Jones Industrial Average was up 1.61%, the S&P 500 gained 1.78%, and Nasdaq jumped 2.4%.
The cyclical stocks rebounded sharply after President Biden reassured the nation not to go back to the hardest lockdowns when the first Covid outbreak hit in March 2020. The Energy and financial sectors jumped on the news, rose 2.89% and 2.02% respectively. Airline and cruise stocks surged for the second trading day. Both Delta Airlines Inc and United Airlines jumped more than 5%. Norwegian Cruise Line gained 6.62%, and Carnival surged 8.5%. Bank stocks also recovered losses from the previous day's selloff, as bond yields moved higher. JP Morgan Chase was up 1.23%, Citi Group and Wells Fargo both gained more than 2%. The energy stocks also had a strong session as crude oil prices greatly reversed losses.
The technology stocks regained ground, jumped 2.6%, supported by the risk-on sentiment. Micron Technology shares price jumped more than 10% amid better a strong earnings report and positive guidance. Nvidia and AMD also gained between 4%-6%. The tech giants all gained between 1%-3%. Apple's share was up by 1.83%.
USD lost ground, pressed by the risk-on sentiment. The commodity currencies including NZD and AUD bounced off recent lows against the USD, the two currency pairs are forming bottom-off patterns in the chart moves.
The 10-year US Treasury yield rose to 1.47%.
The WTI futures price was up by 4.12%, to $71.45.
The gold futures slid $6, to $1,788.5 per ounce.
Disclaimer: CMC Markets is an order execution-only service. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.