US stocks edge higher, regaining footing after slump Friday

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Stock indices rose higher on Wall Street on Monday as markets regained their footing after a major stumbling block on Friday over concerns about the spread of the new version of the coronavirus.

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The S&P 500 was up 0.8 percent as of 10.49 a.m. The benchmark index fell 2.3 per cent on Friday for its worst day since February. The Dow Jones Industrial Average gave up early gains and was up only 17 points, less than 0.1 per cent, at 34,918. The Nasdaq rose 1.2 percent. Shares of the smaller company gave up early gains and moved lower.

Technology companies made some of the biggest profits. Apple rose 1.4 percent and Microsoft 2.5 percent. Retailers and other companies that rely on consumer spending also made solid gains. Amazon rose 1.7 percent and Nike 1.2 percent.

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Airlines stocks remained low as countries reimposed travel restrictions. American Airlines fell 1.5 percent and Alaska Air 1.1 percent. Stocks that had benefited from people staying at home jumped on Friday, falling back on Monday. Home exercise equipment maker Peloton posted a 6.1 percent drop and Zoom Video Communications 3.9 percent.

US crude oil prices edged up 3.1 per cent on Friday after falling more than 13 per cent, partially recovering.

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Like stocks, the bond market and other corners of Wall Street stabilized themselves after Friday’s knee-jerk reaction to the safety and away from riskier investments. With vaccines in hand, the world may be in a better position to face this latest potential wave. Also, Friday’s market moves may be bullish by many professional traders taking the day off after Thanksgiving.

Chris Larkin, managing director of trading at E-Trade Financial, said, “Therefore, as the initial shocks slightly fade away, traders may be eyeing opportunities and come to terms with the potential for some short-term volatility associated with a potential new wave. Huh.” said in a statement.

The yield on the 10-year Treasury rose to 1.52 percent from 1.49 percent late Friday, recovering nearly half of its decline from that day. It tends to rise and fall with the strength of the economy and expectations for inflation. The yield on the two-year Treasury initially rose, but was trading at 0.50 percent by mid-morning, having changed little since Friday.

Despite a reversal from Friday for yields and other areas of the market, they are still below where they were before concerns about Omicron ripping through the markets.

Consider the VIX, an index that measures how concerned investors are about impending drops for the S&P 500. It dropped more than 12 percent to 25.04, but is still up where it was at 18.58 before Thanksgiving.

The broader market has been gaining ground since early 2021, when vaccines were introduced in an effort to fight the virus pandemic that devastated the global economy in 2020. Much of the concern for investors has centered on rising inflation which is potentially crumbling. health benefit. Covid-19 remains a matter of concern.

A surge in cases for the Delta variant dampened consumer spending and worried investors over the summer. The latest threat from COVID-19 comes from the Omicron variant, which was first detected in South Africa and is spreading around the world. The European Union and the UK both announced travel restrictions from southern Africa on Friday. The US also imposed travel restrictions on those arriving from South Africa as well as seven other African countries.

A new surge in cases represents a new threat to the global economy as people plan to travel for holidays and businesses rely on holiday shoppers. It could also complicate planning by central banks that are deciding when and how to roll back stimulus measures, which have helped keep interest rates low and aided stocks.

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Credit: www.independent.co.uk /

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