Stocks rose broadly on Wall Street on Monday, nearly reversing the S&P 500’s losses from last week when jitters over a new coronavirus variant roiled markets.
The benchmark index rose 1.2%. More than 85% of stocks in the index gained ground, with technology companies and banks accounting for a large slice of the gains.
The rally also included airlines, cruise lines and other travel-related companies that stand to benefit from the economy staying clear of more pandemic-related restrictions.
The Dow Jones Industrial Average rose 1.9%, while the Nasdaq composite gained 0.9%. Small-company stocks outpaced the broader market, sending the Russell 2000 index 2% higher. Long-term bond yields rose, also making up a big portion of what they lost last week.
Wall Street was encouraged by comments from Dr Anthony Fauci, the White House’s chief medical adviser, who said early indications suggested that the Omicron variant of Covid-19 may be less dangerous than the Delta variant.
It will still take a few weeks to learn whether Omicron is more contagious, causes more severe illness or evades immunity.
The S&P 500 rose 53.24 points to 4,591.67. The Dow gained 646.95 points to 35,227.03. The Nasdaq rose 139.68 to 15,225.15. The Russell 2000 picked up 44.17 points to 2,203.48.
Bond yields rose, which benefits banks. The yield on the 10-year Treasury rose to 1.44% from 1.33% late on Friday. JPMorgan Chase rose 1.2%.
US crude oil prices rose 4.9% and helped send energy stocks higher. Exxon Mobil rose 1.1%.
Airlines, cruise operators and a wide range of travel-related companies made solid gains. Norwegian Cruise Line vaulted 9.5% for the biggest gain in the S&P 500. Rivals Carnival and Royal Caribbean jumped 8.1% and 8.2%, respectively.
American Airlines climbed 7.9%, while United Airlines gained 8.3%. Expedia Group rose 6.7%. The travel industry has been under pressure over concerns about the latest coronavirus variant and the potential for it to hit economic activity in the midst of the busy holiday season.
Shares in Covid-19 vaccine makers fell. Moderna slid 13.5% for the biggest decline among S&P 500 stocks. Pfizer dropped 5.1% and BioNTech slumped 18.7%.
The stock market is coming off of a choppy week as investors gauged the threat from Covid-19, along with a mixed batch of job market data and lingering inflation concerns. The S&P 500 posted two straight weekly losses heading into this week. The benchmark index is up 22.3% for the year.
Investors will get more economic data this week that could help give them a clearer picture of the economy.
The Labour Department will release its job openings and labour turnover survey for October on Wednesday, along with its weekly unemployment benefits report on Thursday.
Wall Street will get another update on inflation when the Labour Department releases the Consumer Price Index for November on Friday.
A mix of corporate news helped send several stocks higher. Del Taco Restaurants surged 66.1% on news it is being bought by Jack in the Box.
Department store operator Kohl’s rose 5.4% after activist investor Engine Capital LP pushed for a sale or spin off.
BuzzFeed fell 11% in its market debut after the digital media company went public through a merger with a special purpose acquisition company.
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