Rally Enjoys Second Day, NASDAQ Acquires Wings - InvestingChannel

Rally Enjoys Second Day, NASDAQ Acquires Wings

Stocks jumped for a second day, continuing their rebound from a recent rough patch, as investors grew less fearful of the potential economic impact from the new omicron coronavirus variant.

The 30-stock index roared higher 535.47 points, or 1.5%, to pause for lunch at 35,762.50

The S&P 500 index jumped 95.78 points, or 2.1%, to 4,687.27.

The NASDAQ spiked 449.47 points, or 3%, at 15,674.44.

Investors were betting that the new Covid-19 strain may cause milder illness than feared. White House Chief Medical Advisor Dr. Anthony Fauci said Sunday that the initial data on the variant is “encouraging,” though he cautioned that more information was needed to fully understand it.

British drugmaker GlaxoSmithKline said new data shows its monoclonal antibodies treatment is effective in treating the omicron variant. Its shares rose 1%.

Tech stocks were in relief rally mode as investors shook off COVID fears and bought the recent dip, pulling the NASDAQ higher. Crowdstrike and Okta gained 5% while Adobe added 4%. Mega-cap tech stocks got a lift too, with Microsoft, Google, Meta Platforms and Amazon all up about 2%.

Additionally, Apple shares rose 2% as well after a call from Morgan Stanley, in which maintained its outperform rating on the stock but heightened its price target on it to $200, citing the company’s commitment to developing augmented and virtual reality technology.

Chipmakers were big winners too, with Intel leaping 3%, following news that Intel is planning to take its self-driving car unit, Mobileye, public in mid-2022. Nvidia rose 4% and AMD gained more than 3%.

Prices for 10-year Treasurys fell slightly, raising yields to 1.45% from Monday’s 1.44%. Treasury prices and yields move in opposite directions.

Oil prices muscled higher $3.20 to $72.69 U.S. a barrel.

Gold prices gained $3.20 to $1,788.30 U.S. an ounce.