Wall Street closed green on Thursday, the second day it regained ground after the volatility unleashed by the omicron variant of the coronavirus. All three US indices advanced and investors went for value over growth. Small businesses and transport, sensitive to the economic cycle, outperformed the market as a whole.
Of the three major indices, the Dow Jones gained the most, and Boeing Co. was the value that most drove the Industrial Average.
The Dow Jones added 1.8% 575.03 points, to 34,597.07, while selective S&P 500 it advanced 1.4% or 56.26 units, to 4,569.40. The composite market index Nasdaq, in which the technology companies with the highest capitalization are listed, gained 0.8% or 127.27 integers, up to 15,381.32.
“The S&P 500 was 29 days in a row without a 1% variation, neither up nor down, but omicron arrives and in five days we have had this burst of volatility“Said Ryan Detrick, chief market strategist at LPL Financial.
“After the worst two-day drop in over a year, we’re finally seeing a bit of a reboundDetrick added. “Buyers are starting to pick after the recent weakness and pushed stocks higher, but omicron’s uncertainty is still there.”
As the world’s governments scramble to determine how to respond to the emerging omicron variant of COVID-19, The United States is set to require private health insurance companies to provide home testing, a policy expected to take effect on January 15.
The omicron variant has put nervous to the markets for about a week, especially affecting the values related to the travels, as they have enacted a mosaic of new restrictions around the world, but companies rallied in Thursday’s session.
The S&P indices 1500 Airlines and Hotel and Restaurants they ended the session with a sharp rise.
Data on applications for unemployment benefit and the layoffs projected once again demonstrated that entrepreneurs are increasingly reluctant to lay off in a tight labor market, a result of the demand boom that collides with the shortage of workers and low participation in the labor market.
Labor shortages, combined with persistent supply chain constraints, supply, has contributed to erase the word “transitory”From the vocabulary on inflation in the Federal ReserveAs wages and prices continue to rise, which could translate into a rate hike sooner and faster than many expected.
Market players are now turning their gaze to the expected employment report from the Labor Department for November, which is expected on Friday.
“We are optimistic that we will have another solid figure, which suggests that the economy remains on a very strong footing.Detrick added. “We are attentive to the growth of wages in case there is any indication of possible inflationary concern.”
(With information from EFE and Reuters)