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Wall Street omicron ride continues Wednesday, stocks rise – Riverside, California

Riverside, California 2021-12-01 10:45:50 –

The violent move is part of the result of investors struggling to handicap how much the latest coronavirus variants can do to the economy.

Equity, oil and bond yields rose on Wednesday morning trading, recovering much of the sharp losses from the previous day, and the latest move on the Wall Street roller coaster is back.

The S & P 500 rose 1.5% after surpassing expectations for the US economy. This is the latest fast-paced move in the Wall Street benchmark, dropping 2.3% on Friday with the worst loss since February, then rising 1.3% and then 1.9%.

The violent move is part of the result of investors struggling to handicap how much the latest coronavirus variants can do to the economy. There are few concrete answers about Omicron, and investors are exploring the market and sending back and forth as small clues dribble.

When another weight drops on Wall Street on Tuesday, the Federal Reserve could stop huge support for financial markets sooner than expected, given the sustained high inflation that is sweeping the world. I said there is.

However, since breaking out of the collapse in early 2020 caused by the first wave of COVID-19, one feature of the strong stock market movement has been the continued willingness of bargain hunting investors to buy following falling prices. That’s what you are doing. According to the S & P Dow Jones Index, that perpetual habit has helped the S & P 500 set a record 66 in 2021 and is the second highest in a year.

As of 10:09 EST, the Dow Jones Industrial Average rose 358 points (1%) to 34,841. The Nasdaq Composite Index was 1.5% higher.

Long-term Treasury yields have also recovered some of the sharp decline from the previous day caused by concerns over slowing economic growth.

The Treasury yield for 10 years rose from 1.44% to 1.49%, down from 1.52% at the end of Tuesday.

Better than some economic expectations helped. Last month, US manufacturing growth accelerated faster than economists expected, according to a report from the Institute for Supply Management.

In November, non-governmental employers hired more people than economists expected, according to another report from payroll company ADP. The ADP report does not have a complete track record of predicting that, but it could raise expectations for Friday’s more comprehensive employment report from the US government.

A stronger economy will burn more fuel, and crude oil prices have regained some of their sharp recent losses. Benchmark US crude rose 3% to $ 68.18 a barrel after temporarily falling below $ 65 the day before. Brent crude, the international standard, rose 2.9%.

Inventories also rose across Europe and Asia amid uncertainty about how powerful Omicron’s punches would be.

Japan’s Nikkei 225 rose 0.4%, despite tightening regulations by requiring international airlines to stop new bookings for all flights to the end of the year.

South Korea’s Kospi surged 2.1% and Germany’s DAX returned 1.9%.

The Wall Street horror scale has also eased, dropping 13%. However, VIX shows how investors are concerned about the future price decline of the S & P 500, well above the level before Thanksgiving and Omicron around the world dominating the market.

Contributed by Yuri Kageyama, an AP business writer.

Wall Street omicron ride continues Wednesday, stocks rise Source link Wall Street omicron ride continues Wednesday, stocks rise

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