The blue-chip index erased Friday's selloff
Wall Street was determined to set omicron fears aside on Monday, after White House Chief Medical Advisor Dr. Anthony Fauci eased concerns regarding the severity of the new Covid-19 strain. The Dow added no fewer than 647 points, erasing Friday's losses and logging its best single-session gain since November 2020. The S&P 500 also logged a substantial win, while the tech-heavy Nasdaq reversed early-morning losses to walk away with gains. Elsewhere, a rebounding 10-year Treasury yield is in focus, while Bitcoin (BTC) partially recovered from this weekend's selloff to trade around $49,000.
Continue reading for more on today's market, including:
- This e-tail stock's pullback is no cause for concern.
- Why bears blasted Chewy stock ahead of earnings.
- Plus, SolarEdge to join SPX; Wells Fargo stock earns "top pick" rating; and Electronic Arts stock bounces.
The Dow Jones Average (DJI - 35,227.03) added 647 points, or 1.9% for the day. Walgreens Boots Alliance (WBA) led the gainers, adding 3.8%, while Nike (NKE) paced the laggards with a 0.8% fall.
The S&P 500 Index (SPX - 4,591.67) rose 53.2 points, or 1.2% for the day. Meanwhile, the Nasdaq Composite (IXIC - 15,225.15) jumped 139.7, or 0.9% for the day.
Lastly, the CBOE Volatility Index (VIX - 27.18) fell 3.5 points, or 11.4% for the day.
- President Joe Biden is set to warn Russian leader Vladimir Putin that the U.S. will impose severe economic countermeasures if Moscow attacks Ukraine. (CNBC)
- The White House announced a diplomatic boycott of the Winter Olympics in Beijing due to “egregious human rights abuses and atrocities in Xinjiang.” (MarketWatch)
- SolarEdge stock will join the S&P 500.
- Wells Fargo stock popped after Morgan Stanley named it a "top pick."
- Analyst recommends playing struggling Electronic Arts stock on the dip.
There were no notable earnings reports today.
Oil Prices Pop as Investors Brush Off Omicron Threat
Oil prices settled higher on Monday, as fears surrounding the omicron subsided amid news that it may not lead to severe infection. Plus, Saudi Arabia lifted crude prices for certain buyers, which provided support for the commodity. In response, January-dated crude added 4.9%, or $3.23, to close at $69.49 per barrel.
Gold prices finished lower, however. The yellow metal took a hit as Wall Street brushed off Covid-19 concerns and the U.S. dollar gained strength. Investors are still eyeing next week's Federal Reserve meeting, though, to see how inflation may change interest rate policies. As a result, February-dated gold shed $4.40, or 0.3% to close at $1,779.50 an ounce.