By Yasin Ebrahim

Investing.com – The S&P 500 was in rally mode Tuesday, as easing fears about the impact of the Omicron Covid-19 variant and an Apple-led surge in tech pushed the broader market higher.

They rose 2.2% while the Nasdaq saw a 1.5% gain (540 points), and 3.2% increase in the Nasdaq.

After Morgan Stanley increased its price target to $200, the market jumped 4 percent.

Apple’s foray into new product categories including augmented reality and virtual reality, which will bolster its valuation, aren’t yet priced into its shares, according to Morgan Stanley.

Also, chip stocks are in demand, underpinned in part by a rise in Intel (NASDAQ :), as the chipmaker revealed plans to take Mobileye(F:), its self driving car business public in 2022. According to reports, self-driving cars could be worth around $50 billion. However, Wall Street may not agree with this estimate.

“We do struggle somewhat to understand why Mobileye should command a $5″We are unable to comprehend why Mobileye deserves a valuation of $50B,” 0B valuation,” {{0|Wedbush said in a note, estimating the valuation closer to $1.4 billon.

While the move is a positive for Intel, the transaction isn’t expected to change the company’s broader trajectory as its “struggles to maintain share in its core operations,” Wedbush added.

A meltup of cloud-related stocks after a 20% rally in technology also helped to boost tech sentiment MongoDB (NASDAQ:) The database showed a smaller than expected gap.

Amazon (NASDAQ:), meanwhile, held gains as the e-commerce behemoth said it had identified the cause of problems with its cloud services that caused outages across the internet, including Disney Plus, Netflix, and Coinbase.

As investors rejoiced at Omicron’s positive developments, Cyclicals Corners of the Market such as Energy and Financials saw gains.

The new variant is “almost certainly not more severe than the Delta [variant],” Dr. Anthony Fauci, President Joe Biden’s chief medical adviser said Tuesday.

GlaxoSmithKline, NYSE:), announced another positive news that monoclonal antibodies were effective in treating the Omicron variant which is highly mutated.

Energy followed oil prices higher as positive updates on Omicron and expectations that supply of Iranian crude isn’t likely “anytime soon” amid considerable differences on nuclear talks between the U.S. and Iran, Commerzbank said in a note.

In other news, American Airlines’ Doug Parker is set to step down from his role as chief executive on March 31. American Airlines’ President Robert Isom will succeed Parker.