By Yasin Ebrahim

Investing.com – The S&P 500 jumped Tuesday, as investors swooped in to buy beaten down cyclical stocks following the Omicron-fuelled selloff, while a surge in Nike Micron was also able to lift markets.

It rose by 1.6% and gained 1.5% or 537 points. The Nasdaq rose 2.2%.

According to the Centers for Disease Control and Prevention, the Omicron strain is the predominant strain of Covid now in America. It accounts for 73% of all cases, compared with 13% just a week ago.

Investors piled in to beaten areas such as finance as U.S. Treasury yields recovered, despite the rising number of Covid-19 cases.

Micron and Nike have been in the limelight for their better-than expected quarterly earnings.

Wall Street forecasts Nike’s earnings at 83 cents per share were exceeded by strong North American growth that offset weakness in China. This company gained more than 6% in share.

“Overall, we remain bullish on the name, as the brand remains extremely strong, they continue to benefit from the shift to Digital, and the supply chain issues appear to be closer to the end than the beginning,” Wedbush said in a note.

Micron Technology, NASDAQ:), also beat the market and released strong guidance. It was driven by continued demand for memory as well as lessening supply chain disruptions.

Also helping chip stocks, Nvidia (NASDAQ:) rose more than 3% after the chipmaker was flagged as “top pick” by UBS, citing a “wide moat.”

This move in chip stocks was accompanied by a recovery in tech once led by Meta (NASDAQ:), who rose almost 3%.

Microsoft (NASDAQ :), Google’s parent Alphabet (NASDAQ :), Apple and Amazon were all up by more than 1%.

A day after negotiations around the Biden administration’s ‘Build Back Better’ spending package were brought to halt as Senator Joe Machin rejected the package, investors believe the hit to economic growth will be manageable.

The failure of the package in its current form will take “a bite out of GDP and spending growth in early 2022, but the overall consequences should be manageable,”Morgan Stanley said.