The major averages rebounded sharply on Tuesday following three days of losses amid fears about the fast-spreading COVID omicron variant.
The Dow Jones Industrials popped 560.54 points, or 1.6%, to conclude Tuesday at 35,417.77, helped by gains in Nike and Boeing.
The S&P 500 index leaped 81.21 points, or 1.8%, to 4,649.23, as nine of the 11 sectors registered gains.
The NASDAQ spiked 360.14 points, or 2.4%, at 15,341.09.
Reopening plays, like airlines, cruise lines and entertainment stocks, saw some relief buying on Tuesday. Delta Air Lines rose 5.9%, United Airlines gained 6.9% and Carnival Corp. added 8.7%. Las Vegas Sands surged 8.4%. Boeing rallied 5.9%.
Micron shares surged more than 10% after the memory-chip maker posted much better than expected earnings for the prior quarter and gave bullish guidance. NXP Semiconductors and Advanced Micro Devices gained 1.8% each.
Nike shares jumped more than 6% after the sneaker maker reported quarterly earnings and sales that exceeded analysts’ expectations, despite ongoing supply chain pressures. Other retailers like Gap, Dick’s Sporting Goods and Macy’s also gained.
Oil bounced 2.5% back to above $70 a barrel, spurring a rebound in energy names like Devon Energy, ConocoPhillps and Chevron.
Stocks came back from a three-day losing streak spurred by the omicron surge that accounted for 73% of new infections in the U.S. last week, federal health officials said Monday. The S&P 500 notched its worst three-day stretch since September on Monday.
Investors also assessed the prospects for President Joe Biden’s economic agenda. The Senate will vote on Biden’s sweeping social safety net and climate policy bill in January, despite Democratic Sen. Joe Manchin’s opposition to it. It is unclear if Democrats will try to pass a smaller bill that includes only parts of the full package.
Prices for 10-year Treasurys fell, raising yields to 1.47% from Monday’s 1.43%. Treasury prices and yields move in opposite directions.
Oil prices advanced $2.87 to $71.48 U.S. a barrel.
Gold prices slid $6.10 to $1,788.50 U.S. an ounce.