Home Stock exchange Stock market today: S&P 500 bounces back as news of Omicron foreclosure eases

Stock market today: S&P 500 bounces back as news of Omicron foreclosure eases

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Inventories were higher on Tuesday, with the


S&P 500

rebounding from its worst three-day drop since September 30.

Shortly after opening, the


Dow Jones Industrial Average

rose 300 points, or 0.9%, while the S&P 500 was up 0.7% and the


Nasdaq composite

gained 0.7%.

The UK has spoken out against further lockdowns – for now – in light of the spread of the Omicron Covid-19 variant. This could boost investor confidence a bit, as other countries have already imposed lockdowns.

But overall, the stock market has already seen a downturn and some are now buying the downside. The S&P 500, stable since early November, had fallen 4% from an all-time high to its low in that streak. Several economically sensitive sectors, like oil and banking, were in correction territory as recently as Monday, down more than 10% from recent highs.

Not only has Omicron sparked fears about global economic activity, but central banks are tightening monetary policy by rapidly reducing the amount of bonds they buy each month and seeking to raise short-term interest rates.

The market is not out of the woods. All three major US indices are trading below their all-time highs and the Fed has yet to implement its first interest rate hike yet.

The decline of the S&P 500 from recent all-time highs, the last two of which were at the 4,712 and 4,704 index levels, shows that investors are selling stocks at around these levels. Instinet’s chief market technician Frank Cappelleri noted that the index has seen a “double top” pattern. Ideally, a bullish investor would like the index to be able to break above this high in order to maintain confidence in the bullish direction of the market.

“The development of (Monday) stock prices should remind investors how bumpy the road can get, as easy as it sounds in the rearview mirror,” said Charlie Ripley, senior investment strategist at Allianz Investment Management. Investors should “prepare for the turbulent roads ahead,” Ripley said.

Generally speaking, market participants have turned to riskier assets instead of safer assets.

Asian markets posted strong gains on Tuesday, with the


Nikkei 225

up more than 2% after a collapse on Monday. European stock indices rose by more than 1%.

Oil prices were starting to rebound, with WTI crude oil rising 3% on Tuesday, after falling more than 3% on Monday.

The price of Treasury bonds fell, with the 10-year yield on U.S. government bonds hitting 1.47% from a closing level of 1.43% on Monday. This is the highest level of return since December 10.

As for Covid-19, the Centers for Disease Control and Prevention said on Monday that the Omicron variant accounted for about 73% of infections for the week ended December 18, overtaking the Delta variant.


Modern

(ticker: MRNA) released positive data, claiming that a 50 microgram booster dose of its Covid-19 vaccine increased neutralizing antibody levels against the Omicron variant by approximately 37 times.

Here are five actions in motion on Tuesday:


Micronic Technology

(MU) rose 9.3% after the memory chip company posted strong earnings and provided better-than-expected guidance for the current quarter.


Nike

(NKE) shares rose 5.7% after the sneaker maker reported second-quarter earnings and sales that beat analysts’ expectations despite continuing supply chain challenges.


Nicolas

Stock (NKLA) first rose and then fell 0.5% after agreeing to settle civil fraud charges brought by the Securities and Exchange Commission. Without admitting the charges announced Tuesday, Nikola will pay a fine of $ 125 million to compensate defrauded investors.


General Mills

(SIG) fell 3.7% after the company reported earnings of 99 cents per share, missing estimates of $ 1.05 per share, on sales of $ 5 billion, above expectations of 4.8 billion dollars.


United Rentals

The stock (URI) fell 0.2% after being demoted to Neutral from Outperform at Baird.

Write to Jacob Sonenshine at [email protected] and Joe Woelfel at [email protected]