Tech rally pulls Wall Street out of Omicron crisis

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A sign indicating Wall Street is visible in front of the New York Stock Exchange (NYSE) in Manhattan, New York, United States on December 28, 2016. REUTERS / Andrew Kelly / File Photo

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  • Travel, energy stocks rebound from recent lows
  • Nasdaq leads gains, tech demand is strong
  • Indexes up: Dow 0.37%, S&P 1.27%, Nasdaq 1.06%

Nov. 29 (Reuters) – Gains in tech-heavy stocks pushed Wall Street indices higher on Monday as investors rushed to profit from large losses caused by viruses, with Twitter on reports that Chief Jack Dorsey should resign.

S&P tech (.SPLRCT) and communications services sub-indices (.SPLRCL) jumped more than 1% each, indicating investors likely favored pandemic-resistant tech stocks amid growing fears of the variant. Newly discovered Omicron.

The S&P 500 Energy Index (.SPNY) jumped 3% at the start of trading and was the best performer among its peers, as oil prices rebounded from Friday’s sell-off. A rally in Treasury yields also pushed the banks index (.SPXBK) 0.8% higher. we

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Twitter Inc (TWTR.N) jumped 11% after reports said Dorsey intended to step down. Dorsey was pressured in 2020 to resign over allegations he was paying too little attention to Twitter while also running payment processing company Square Inc (SQ.N). Read more

Wall Street indices had fallen between 2.0% and 3.5% on Friday after news of the coronavirus variant sparked a worldwide sell-off, as countries introduced new travel restrictions over fears that the Omicron variant resists vaccinations and upsets a nascent economic reopening. Read more

US President Joe Biden is due to brief the public on the variant and the country’s response later today, the White House has said. Read more

Travel stocks, among the hardest hit in Friday’s liquidation, posted strong gains. Shares of major airlines rose 0.7% to 2.6% after falling 3% to 9% on Friday.

“If Omicron were to become a major problem, it would have to be bigger than the Delta waves that we just went through. There is no doubt that the (Fed) cone would either be interrupted or delayed,” said Thomas Hayes, member. director of Great Hill Capital LLC, New York.

“You may have a little whiplash with the headlines in the coming weeks, but overall people need to be on display until the end of the year.”

At 9:46 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 129.10 points, or 0.37%, to 35,028.44 and the S&P 500 (.SPX) was up 39.39 points, or 0.86%, to 4,634.01. The Nasdaq Composite (.IXIC) gained 167.76 points, or 1.08%, to 15,659.41.

Dow Jones (.DJI) gains were stifled by Merck & Co Inc (MRK.N), which fell 4.7%, adding to a 3.8% drop on Friday after updated data from the study of its experimental COVID-19 pill showed less effectiveness in reducing the risk of hospitalization and death than previously reported. [nL4N2SH2XA]

Among other stocks, casino operators Wynn Resorts (WYNN.O) and MGM Resorts International (MGM.N) fell 1.9% and 0.4% respectively, following losses at their Macau units, which been rocked by arrests for suspected border links with gambling and money laundering. Read more

Advanced Micro Devices (AMD.O) rose 2% following report that electric car maker Tesla Inc (TSLA.O) started using new AMD chip in Model Y vehicles in China .

Tesla shares gained 3.5% after a report that Chief Elon Musk urged employees to reduce vehicle delivery costs.

Apple Inc (AAPL.O) gained 1.7% after HSBC raised its price target for the iPhone maker.

Rising issues outnumbered declines by a 2.46-to-1 ratio on the NYSE and by a 1.51-to-1 ratio on the Nasdaq.

The S&P Index recorded a new 52-week high and no new lows, while the Nasdaq recorded 20 new highs and 59 new lows.

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Report by Ambar Warrick in Bangalore; Editing by Shounak Dasgupta and Maju Samuel

Our Standards: Thomson Reuters Trust Principles.


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