The broader markets rebounded after the previous day's sell-off from omicron jitter. All the three US major indices finished higher. The Dow Jones Industrial Average jumped 1.82%, to 34,639.79, S&P 500 climbed 1.42%, and Nasdaq advanced 0.83%. The economic sensitive or cyclical sectors outperformed growth stocks as investors buy the dip from the beaten-up economic reopening stocks.
All the 11 sectors of the S&P 500 closed in green. Industrial, Energy, and financial stocks were all up 2.9%, leading the broad market gains. Airline and hotel stocks all gained between 6% to 9%. Delta Air Lines soared 9.15%, United Airlines Holdings Inc surged 6.63%, and Norwegian Cruise Line Holdings climbed 7.3%. Boeing jumped 7.3% after China's aviation authority approved the 737 aircraft.
The energy sector also strongly rebounded as oil futures reversed from ground lost in the last few sessions after OPEC+ decided to stick to the plan of an increase of 400,000 barrels per day in January. But the organization indicates to "make immediate adjustments" according to the market conditions.
Technology stocks, however, had a relatively calmer session. Apple shares slid 0.54% after the company said the iPhone supplier demand is weakening coming into the holiday season. The Google parent, Alphabet was up 1.79%. Amazon and Meta Platform were flat. Tesla slipped 1%.
The US stock markets went into selloff mode since Black Friday when the new Covid variant omicron was found in both Hong Kong and the U.K., which sparked a risk-off sentiment across the broader markets. The Fed Chairman’s comments to speed up the tapering plan also added concerns of a slowing down economic growth if another wide lockdown coming in place.
The 10-year US Treasury yield stays low at 1.438%.
The Gold futures fell further, pressed by the risk-on sentiment and a strong dollar.
The WTI futures price was up 2.07%.
VIX fell 11.05%, to 27.73.