Stock futures rise as market set to build on Monday’s rebound from omicron-triggered sell-off
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A trader works on the floor of the New York Stock Exchange (NYSE) at the start of trading on Monday following Friday’s steep decline in global stocks over fears of the new omicron Covid variant discovered in South Africa on November 29, 2021 in New York City.
Spencer Platt | Getty Images
After Wall Street’s rebound, stock futures rose overnight Monday as investors assessed the risks of investing in the new omicron Covid version.
Futures of the Dow Jones Industrial Average gained 75%. S&P 500 futures and Nasdaq 100 futures both ticked up 0.2%.
The overnight action came after a broad-based comeback that saw the S&P 500 jump 1.3% with all 11 sectors registering gains. After President Joe Biden declared economic lockdown, major averages rose to sessions highs Monday. are currently off the tableNo new travel restrictions will apply. Blue-chip Dow finished the day higher than 200 points.
Jean Boivin (head of BlackRock Investment Institute) said Monday that “we stay invested for the moment as a new strain of virus and European COVID surge have hurt risk sentiment.” Any delay in the strong restart now will mean more later.
This new Covid variant has been detected in over a dozen countries. It was initially discovered in South Africa. restrict travel. According to the World Health Organization (WHO), the Omicron strain is a “contaminant”.variant of concern” on Friday when the Dow slid 900 points to suffer its worst day since October 2020.
As a result of the omicron-related covid symptoms, they have been described. “extremely mild” by the South African doctor who first raised the alarm over the new strain. The WHO stated that it would take several weeks for the WHO to determine how this variant could affect vaccines, diagnostics, and therapeutics.
Federal Reserve Chairman Jerome Powell believes that the omicron variant poses a threat to the central bank’s mandate to achieve stable prices and maximum employment, he said in remarks he plans to deliver to Senate lawmakers on Tuesday.
The CBOE volatility indexWall Street’s fear gauge or VIX (also known as the VIX), saw a decline Monday, however, it remained at 22. On Friday, the gauge jumped 10 points to 28.
Nationwide’s chief investment researcher Mark Hackett said, “This week will prove instructive in determining if investors are still using the buy-the dip approach or if markets have more vulnerability to a significant pullback.”
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