Dow recovery gains momentum, up 500 points, as stock market aims to recover from Tuesday’s defeat

The rally in US stock indices was gaining momentum on Wednesday morning, after the sell-off in the previous session, which was triggered in part by expectations of a faster Fed decline as well as concerns surrounding the omicron variant of the coronavirus.

How are stock index futures traded?
  • S&P 500 . Index
    SPX,
    + 1.59%

    It rose 84 points, or 1.8 percent, to 4,650 points.

  • Dow Jones Industrial Average
    DJIA,
    + 1.18%

    Traded 500 points, or 1.4%, up to 34,982 points.

  • Nasdaq Composite Index
    COMP,
    + 1.28%

    267 points advanced 1.7% to 15,804 points.

employment TuesdayThe Dow Jones Industrial Average fell 652.22 points, or 1.9%, to 3,4483.72 points. The Standard & Poor’s 500 Index fell 88.27 points, or 1.9%, to 4,567 points, while the Nasdaq Composite Index fell 245.14 points, or 1.6%, to 15,537.69. Russell 2000 . index
rut,
+ 1.29%

It fell 1.9% to 2198.91, which is close to a close from 2198.47 that would have put it in a correction zone, defined as a drop of at least 10% from a recent peak.

What is driving the markets?

Another day, it again attempted a market rebound after a sell-off linked to concerns about the impact of the omicron variant of the coronavirus that causes COVID-19.

Meanwhile, the market was analyzing the data, as private payrolls in the US rose by 534,000 in November, According to the ADP’s National Employment Report on Wednesday. Economists whose forecasts were polled by the Wall Street Journal had forecast an increase of 506,000 private sector jobs in November. However, November’s numbers are lower than the 570,000 numbers in October.

The ADP results come ahead of the closely watched November payroll data due out on Friday.

Michael Hewson wrote: “US markets ditched yesterday’s surprise in Fed Chairman Jay Powell’s hawkish bias, and opened higher after the latest ADP employment report showed 534,000 jobs were added in November, reinforcing the narrative that the US economy is on track. okay.” , chief market analyst at CMC Markets UK, in a note.

Wednesday’s move comes after stocks sank on Tuesday, following Moderna
mRNA,
-9.22%

CEO Stefan Bansel expressed skepticism about existing vaccines against the omicron variant, which the World Health Organization on Friday classified as a variant of concern because they fear it may be more transmissible and difficult to immunize against due to mutations in the so-called spike. protein.

is reading: ‘Don’t panic’: Omicron is bound to disrupt supply chains. The question is, how bad would it be?

The second blow to stocks came after Federal Reserve Chairman Jerome Powell spoke Accelerate the process of diminishing, given the “extremely strong” economy and “high” inflation pressures. He made the remarks before the Senate Banking Committee on Tuesday, where he appeared alongside Treasury Secretary Janet Yellen.

Analysts said the market will remain laser-focused on updates to the omicron variant, with data expected over the next two weeks or so.

“While Powell has decided to retire the temporary phrase when discussing inflation, the reality is that this latter alternative risks ensuring that this current hawkish tone is itself somewhat temporary in nature,” said Joshua Mahoney, IG’s chief market analyst. Note to customers.

“With the risk of future shutdowns and economic shutdowns, comments from the Fed and Bank of England should be taken with a pinch of urgency given how much could change once the full scope of this alternative is discovered,” Mahoney said.

It is said that the United States To announce more travel restrictions this weekAmong them is the requirement that all air travelers be tested for COVID within one day of their flight. Details are being finalized ahead of a planned speech from President Joe Biden on Thursday, in which he is expected to detail the country’s plan to control the pandemic this winter.

In other economic data, there is a closely watched indicator US manufacturers rose to 61.1 in November from 60.8 the previous month, the Institute for Supply Management said Wednesday. That matched expectations of economists polled by the Wall Street Journal. Any number above 50 indicates growth. A separate reading from IHS Markit showed that the US manufacturing PMI for November fell to 58.4 from the initial 59.1.

On the other hand, Powell and Treasury Secretary Janet Yellen began their second appearance on Capitol Hill on Wednesday at 10 a.m., this time in front of the House of Representatives.

Looking ahead, the Fed’s Beige Book of Economic Conditions is due out at 2 PM ET.

Crude oil was too bouncing hard From a sharp sell-off on Tuesday. West Texas Intermediate crude for January rose 4.5% to $69.12 a barrel, while Brent crude, the global benchmark, rose 4.5% to $69.12 a barrel
BRN00,
+2.41%

It jumped 4.9 percent to $72.64 a barrel. Strategists at Goldman Sachs said that the reaction of the oil market was “Excessive” for the omicron variable.

What companies are focused on?
  • Groupon Inc. GRPN It announced Wednesday that it has appointed Zappos veteran Kedar Deshpande as the company’s next CEO. Deshpande has spent the past decade at Zappos in a variety of roles, including as CEO.

  • shares GlobalFoundries
    GFS,
    -2.48%

    It was rising Wednesday after the semiconductor manufacturer, benefiting from an ongoing global chip shortage, reported a 56% jump in third-quarter revenue.

How are other assets traded?
  • gold futures contracts
    GC00,
    + 0.59%

    It rose 0.8% to $1,790.30 an ounce.

  • ICE . US Dollar Index
    DXY,
    -0.02%
    And
    The currency gauge fell against six other monetary units by 0.2% at 95.853.

  • The yield on 10-year Treasury bonds
    TMUBMUSD10Y,
    1.457%

    About 1.48%, up from 1.440% on Tuesday at 3 p.m. ET. Treasurys prices fall as yields rise.

  • Stokes Europe 600
    xxxp,
    + 1.71%

    It rose 1.3% and the FTSE 100 index in London
    UKX,
    + 1.55%

    It rose 1.1%.

  • In Asia, the Shanghai boat
    SHCOMP,
    + 0.36%

    The Hang Seng Index is up 0.3%.
    HSI,
    + 0.78%

    Gain 0.7% and Japan’s Nikkei 225
    I,
    + 0.41%

    It rose 0.4%.

.

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