Stock Market rebounds after Turbulent Tuesday Sell-Off

0
71

The Dow Jones Industrial Average jumped more than 500 points at one point on Wednesday, with stocks that were hit hard by the emergence of the Omicron variant of the coronavirus recovering some of their losses for the week.

The Dow pared some of those gains shortly before noon after South Africa reported nearly twice as many new COVID-19 cases on Wednesday compared with Tuesday. The index was last seen about 400 points, or 1.1 percent, higher.

The S&P 500 and Nasdaq were up 1.5 percent and 1.2 percent, respectively.

The gains come after Tuesday’s sell-off as investors fretted over fears that COVID-19’s new Omicron variant could wreak fresh havoc on the world economy. At the same time, the omicron is spreading new fear and uncertainty, the dominant delta variant is still creating havoc, especially in Europe, where many countries are dealing with a surge in infections and hospitalizations and some are considering making vaccinations mandatory.

But since climbing out of its early 2020 collapse caused by the first wave of COVID-19, one hallmark of the stock market’s powerful run has been the continued willingness by bargain-hunting investors to buy following any dip in prices. That lasting habit has helped the S&P 500 set 66 all-time highs so far in 2021, the second-most on record for a year, according to S&P Dow Jones Indices.

It also helped the Dow Jones Industrial Average to rise 399 points, or 1.2%, to 34,886, as of 12:24 p.m. Eastern time. The Nasdaq composite was 1.3% higher.

Longer-term Treasury yields also recovered some of their sharp drops from the day before, triggered by worries about slowing economic growth.

The yield on the 10-year Treasury rose to 1.46% from 1.44% late Tuesday, when it fell from 1.52%.

Some better-than-expected data on the economy helped. A report from the Institute for Supply Management showed that the manufacturing sector is growing faster last month than economists expected.