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Dow jumps nearly 650 points, erasing last week’s losses as investors shake off omicron worries

Stocks rallied to start the week Monday, with the Dow erasing its losses from the previous week, as investors shook off fears around the emerging threat of the Covid omicron variant.

 

The Dow Jones Industrial Average jumped, while the Nasdaq Composite lagged, though it was still in positive territory. Here’s what was influencing the markets to start the week:

 

·         Shares linked to the economic reopening gained in Monday trading, including energy, industrials and airlines.

·         Investors sold tech stocks with relatively high valuations. Those shares dragged the market down to a losing week on Wall Street last week. Indeed, though the Nasdaq gained Monday, it still underperformed the S&P 500 and the Dow.

·         The 10-year Treasury yield rebounded after falling last week amid the omicron threat.

·         There’s a major shift underway at the Federal Reserve to bring about a faster end to its pandemic easing policies.

·         Bitcoin declined sharply at the end of the prior week, plummeting by $10,000 in a 24-hour period from Friday to Saturday. The move suggested a decreasing risk appetite among investors.

 

The Dow gained 646.95 points on Monday, or 1.8%, to 35,227.03.

Meanwhile, the Nasdaq Composite climbed out of negative territory and ended 0.9% higher to 15,225.15.

 

The S&P 500 rose 1.1% to 4,591.67.

Reference: CNBC