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 Dow Jones Industrials roared higher 492.40 points, or 1.4%, to close at 35,719.43
The S&P 500 index jumped 95.08 points, or 2.1%, to 4,686.75.
The NASDAQ spiked 461.76 points, or 3%, at 15,686.92.
Tech stocks were in relief rally mode as investors shook off COVID fears and bought the recent dip, pulling the NASDAQ higher. Okta rose 5.7%, while Crowdstrike added 4.9%. Adobe gained 4.4%.
Chipmakers were big winners too, with Intel leaping 3.1% following news that it’s planning to take its self-driving car unit, Mobileye, public in mid-2022. Marvell gained more than 7%, and Nvidia climbed 7.9%. Micron added 4.1%.
Apple shares rose 3.5% as well after a call from Morgan Stanley, which maintained its overweight 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.
Other mega-cap tech stocks got a lift too, with Microsoft and Amazon up more than 2%. Meta Platforms added 1.5%.
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.
Prices for 10-year Treasurys fell slightly, raising yields to 1.48% from Monday’s 1.44%. Treasury prices and yields move in opposite directions.
Oil prices muscled higher $2.21 to $71.70 U.S. a barrel.
Gold prices gained $5.50 to $1,785.00 U.S. an ounce.