- The S&P 500 is enjoying a relief rally on Monday, recovering from below 4,600 to around 4,630.
- Omicron remains the main topic of the market and Biden will deliver a speech on the new variant at 1645GMT.
The US Stock Markets They are enjoying a relief rally this Monday, with the S&P 500 index higher by about 0.9%. The index fell 2.3% on Friday to close below 4,600 amid fears that the newly discovered Omicron Covid-19 variant would trigger global travel restrictions and lockdowns, hurting prospects for global growth. That was the first close of under 4,600 so far in November. Since then, the index has recovered to the 4,600 level and is currently trading around 4,630.
But analysts said the decline was exacerbated by tight liquidity conditions due to the Thanksgiving holiday in the US, with some saying the move down was exaggerated. So some appetite for buying on the dips has returned to the market, and investors are hoping to close a good deal by Black Friday. Preliminary reports in South Africa from doctors treating patients infected with Omicron indicate that the variant may be milder than older variants, which may also help risk appetite. But the latest figures from South Africa’s Gauteng province showed a sharp increase in the number of hospitalized patients.
Since the new variant is touted as significantly more transmissible than the delta variant, if it starts to look like it causes severe illness, then the reduced risk may return to the markets. US President Joe Biden will deliver a speech on the Omicron bypass at 1645 GMT, the White House announced earlier in the session.
Despite a surge in US government bond yields, which were also reducing losses last Friday, the duration-sensitive US tech sector led the recovery in US equity markets. The US on Monday, with the Nasdaq 100 gaining 1.5%. A more than 10% rise in Twitter’s share price following news that CEO Jack Dorsey is expected to step down helped the industry.
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