Updates after close of U.S. markets

Shreyashi Kanyal, Lewis Krauskopf, and Bansari Kamdar

(Reuters] – Wall Street’s main indexes finished sharply higher on Tuesday due to strength in tech shares and travel. Nike Micron Technology and (NYSE) after their earnings. Stocks recovered from the coronavirus-fueled crash of the previous session.

Omicron, the rapidly-emerging coronavirus variant, has shaken stock markets all over the world. This volatility has triggered volatility in the last month 2021 which had otherwise been an excellent year for equities.

On Tuesday indexes were lifted by gains in tech stocks and technology-related stocks like Amazon (NASDAQ) and Microsoft (NASDAQ) as well as increases in economically sensitive sectors such as energy. Carnival Corp (NYSE:) Corp was one of the most popular travel stocks. Las Vegas Sands (NYSE: Expedia (NASDAQ:) Group.

“It is clearly a risk-on day,” said David Joy, chief market strategist at Ameriprise Financial (NYSE:) in Boston. “This is clearly, at least for the day, investors saying, ‘You know what, we are going to be able to ride through this Omicron surge and come out the other side in pretty good shape.’”

According to preliminary data, the S&P 500 gained 81.09 points, or 1.78%, to end at 4,649.11 points, while the Nasdaq Composite gained 360.25 points, or 2.40%, to 15,341.19. The Dow Jones Industrial Average rose 562.75 points, or 1.59%, to 35,488.68.

Sectors that were defensive such as utilities and consumer staples which have been leading in December fell on Tuesday.

Nike shares rose as the apparel giant beat quarterly estimates of profit and revenue. The company also said that it felt more certain that its supply chain issues will improve in the coming fiscal year.

Micron Technology shares rose after Micron Technology forecast that second quarter sales and profits would beat expectations. There will be a decrease in shortages by 2022, according to the company.

“If Micron’s forecast is strong, that tells us broadly speaking that demand is strong across many different industries,” said King Lip, chief strategist at Baker Avenue Asset Management, adding that Micron’s products “go into so many different industrial applications.”

General Mills Shares of the (NYSE: ) tumbled after Wall Street missed Wall Street expectations for quarterly profit.

In 2021, the benchmark gained approximately 23%.