Wall Street stocks rose on Monday, driven by travel stocks. Omicron Coronavirus variants help ease the new blockade.
The broad S & P 500 index fell 0.8% on Friday and then rose 1.2% on Monday. Travel-related stocks recovered strongly, with Norwegian Cruise Line, United Airlines, Royal Caribbean Cruise and Carnival shares all rising by more than 8%.
Jack Ablin, Chief Investment Officer of Cresset Wealth Advisors, said: “I think the market has concluded that we are not going to stick to it.”
On Sunday, Anthony Fauci, the best health official in the United States Called An early signal about the seriousness of Omicron tells news channel CNN that “I’m confident that there is some, and perhaps a considerable degree of protection,” in the booster jab.
While scientists are waiting for definitive data on variants, the market can fluctuate with fresh headlines about Omicron.
The technology-focused Nasdaq Composite closed at 0.9% higher on Monday. The decline in gain continues the trend seen in the last two weeks, with Nasdaq lagging behind the S & P 500.
Investors have withdrawn from the fast-growing tech stocks as US central bank policymakers have shown their comfort by tightening policies more aggressively than previously thought. High-tech sector equities are particularly sensitive to changes in interest rates, given that industry valuations are highly dependent on future profits.
Tesla shares on Monday fell more than 20% temporarily from last month’s record high hit before regaining some of these losses.
In the Treasury stock market, bond yields above maturity have risen, with long-term maturities rising faster than short-term bonds. Rising short-term yields indicate a growing consensus among investors that the Federal Reserve will raise interest rates.
Federal Reserve Chairman Jay Powell last Tuesday Signaled his support To reduce borrowing costs during a pandemic and more quickly reduce the central bank’s $ 120 billion monthly bond purchases that pushed up equities. Accelerating winddowns suggest that the Fed may accept rate hikes sooner than originally expected.
Rising long-term maturities usually suggest that investors are expecting higher US economic growth or inflation, yet 10- and 30-year yields remain close to the lower bounds of recent trading ranges. So these expectations seem to have been softened.
Benchmark 10-year Treasury yields rose 0.09 percentage points to 1.43 percent as debt prices fell. This debt yield traded at over 1.65 percent in late November, before the World Health Organization declared Omicron a variant of concern, and before expectations for a quicker tightening of monetary policy permeated.
US employment data released Friday showed that US employers added 210,000 workers last month. This is less than half the number of economists polled by Reuters. The data also show that the unemployment rate has dropped significantly to 4.2%.
The STOXX 600 stock index in Europe rose 1.3%. London’s FTSE 100, with the heavy weight of commodity producers and miners, rose about 1.5%. UK-listed travel stocks also closed at high prices, with British Airways owner IAG stocks up 8.1%.
In the Asian stock market, Hong Kong’s Hang Seng Index fell 1.8% and prices of major Chinese tech companies such as Alibaba and Tencent fell sharply. Tokyo tops closed at 0.5% lower.
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Travel stocks lead Wall Street higher as markets reassess Omicron’s risk
Source link Travel stocks lead Wall Street higher as markets reassess Omicron’s risk