U.S. stocks post solid rebound as concern over Omicron eases

Xinhua
30 Nov 2021, 07:25 GMT+10

NEW YORK, Nov. 29 (Xinhua) -- U.S. stocks realized meaningful growth on Monday following deep losses in the previous session as investors became less nervous about the new COVID-19 variant Omicron.

The Dow Jones Industrial Average was up 236.60 points, or 0.68 percent, to 35,135.94. The S&P 500 increased 60.65 points, or 1.32 percent, to 4,655.27. The Nasdaq Composite Index was up 291.18 points, or 1.88 percent, to 15,782.83.

All of the 11 sectors under the S&P 500 Index closed higher and the tech sector and consumer discretionary sector led the gains up 2.64 percent and 1.63 percent, respectively.

The United States would impose no new travel restrictions in regards to Omicron, said U.S. President Joe Biden on Monday.

"If people are vaccinated and wear their masks, there's no need for lockdowns," Biden said at a press conference.

The Cboe Volatility Index, widely considered as the best fear gauge in the stock market, dropped 19.78 percent to 22.96 on Monday.

The negative economic impact from an Omicron wave should be smaller than prior COVID-19 waves, barring a truly severe variant, said Jason Draho, head of asset allocation Americas of UBS Global Wealth Management.

The market reaction on last Friday looks excessive in light of strong U.S. growth momentum extending into 2022, according to Draho.

Still, Draho expected market volatility to remain high at least for the next few weeks, with risk assets vulnerable to temporary pullbacks.

The above-mentioned three equity indexes in the United States all lost more than 2 percent on Friday as global stock markets fell over the discovery of Omicron.

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