U.S. stock indices added significantly in trading on Thursday, December 2, amid investors’ rethinking about the danger level of the new omicron strain, and positive statistics from the labor market.
The Dow Jones index rose 1.82%.
The S&P 500 broad market index was able to add 1.42%. Technology stocks, represented by the Nasdaq, lagged slightly, adding 0.82% as a result. The DJI was led by Boeing (BA) shares +7.53%.
Beijing has finally allowed the troubled 737 Max model to operate. This could be the impetus for wider accreditation of this airliner. Recall that after a series of aviation incidents involving the Max, many countries have banned the operation of this aircraft until all potential problems are resolved.
On the general market backdrop, the most significant pullback was shown by the losers of recent days. Delta Air Lines paper was up 9.3%, MGM Resorts added nearly 7.7% and Hilton Worldwide was up 7.4%.
Apple (AAPL) shares were down 0.6% after an unexpected Bloomberg story, which reported that the tech giant is facing difficulties as demand for its flagship Iphone line falls.
Shares of the recently soaring vaccine maker have fallen significantly. And while Moderna (MRNA) shares lost “only” 2.94%, Novavax (NVAX) papers “paid” in full for the protective indulgence, losing almost 16%.
Amid the emergence of the Omicron strain in the US, the Biden administration has asked businesses to comply with the requirement to vaccinate employees, despite the fact that the requirement itself is stopped by the courts and is under review.
JPMorgan believes in omicron
Unexpectedly for many, analysts at JPMorgan considered the development with the new strain a positive development for the market, and recommend buying the strait on indices
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Their main idea is that the new strain is not as dangerous as it seemed to many in the first days of its emergence, and investors’ reaction to it was overly emotional.
U.S. bank strategists suggest that the coronavirus pandemic will turn into something similar to the common flu in the very near future. They even joke that the WHO has wrongly given it the name “omicron”, thinking “omega”-the last letter of the Greek alphabet-is a more appropriate name for it.
Dow Jones is rising. JPMorgan believes Omicron will save the world. Photo: Yandex Images
The Bank of America is also trying to keep a positive outlook, noting that December is a historically strong month for the S&P 500. The index has risen an average of 2.3% since 1936 and has been positive 79% of the time. That said, for propriety’s sake, bank strategists are trying to remain cautious amid hawkish Fed policy tightening.
Omicron is already in New York
After the market closed, CNBC reported the emergence of omicron in New York State. Health Department officials said its discovery does not mean restrictions will return to the city like last year, which shut down businesses and put millions of residents out of work.
