Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall Street Opens Sharply Higher as Omicron Fears Recede; Dow up 400 Pts

Stock MarketsDec 07, 2021 15:20
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Geoffrey Smith 

Investing.com -- U.S. stock markets opened sharply higher on Tuesday as traders rushed to buy the recent dip, in the hope that the new variant of Covid-19 that caused it will not, after all, be economically disruptive.

By 9:45 AM ET (1445 GMT), the Dow Jones Industrial Average was up 409 points, or 1.2%, while the S&P 500 was up 1.6% and the Nasdaq Composite was up a whopping 2.2%.

Data emerging so far from South Africa, where the Omicron variant was first identified, suggest that it causes a milder form illness than the Delta variant that has been responsible for most of the 5.3 million deaths attributed worldwide to Covid-19 in the last 21 months. A strain that becomes dominant by virtue of its higher infectiousness, but which causes less strain on public health systems around the world, has the potential to speed up the progress toward herd immunity and bring the pandemic to an earlier end.  

Among early movers, Intel (NASDAQ:INTC) stock stood out with a gain of 5.0% after it confirmed it will spin off its Mobileye (F:0ME) venture, helping it to raise cash as it embarks on an expensive expansion of manufacturing capacity. A Reuters report said Mobileye could be valued at over $50 billion, more than triple what Intel paid for it only four years ago.  That would also imply that Mobileye, whose specialty is in developing chips for the autonomous vehicle segment, now accounts for around a quarter of Intel's overall market value.

One of Intel's biggest rivals was also in the news earlier: Samsung (LON:0593xq) Electronics (OTC:SSNLF) said it would revamp its structure and appoint a third co-CEO, in an effort to revive its flagging mobile business. Samsung (KS:005930) too is spending heavily on new chipmaking capacity, having committed last month to a new factory in Texas that will cost $17 billion. Samsung ADRs were yet to trade in over-the-counter markets but closed up 1.4% earlier in Seoul.

Action was dominated by tech megacaps, which have suffered a rare sell-off in recent days as first the Federal Reserve threatened to speed up the pace of monetary tightening and then the emergence of Omicron threatened a new economic slowdown. By 10 AM ET, Apple (NASDAQ:AAPL) stock was up 2.9%, Amazon (NASDAQ:AMZN) stock was up 2.3% and Microsoft (NASDAQ:MSFT) stock was up 1.9%, the last of the three also supported by reports that it's planning to raise prices for its flaghip Office suite of applications - at least for those who choose to pay bills by monthly subscription. Tesla (NASDAQ:TSLA) stock rose back above $1,000 with a 4.1% gain.

Elsewhere, American Airlines (NASDAQ:AAL) stock rose 3.4% to its highest level in two weeks after the company announced that long-standing CEO Doug Parker will step down in March, to be replaced by current president Robert Isom.

 

 

 

Wall Street Opens Sharply Higher as Omicron Fears Recede; Dow up 400 Pts
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email