4:05pm: Omicron no cause for panic, says Biden, leading US stocks higher at the close
US stocks regained ground on Monday to recover some losses after Friday's slide, when uncertainty over a new coronavirus variant stoked volatility across global markets.
The tech-laden Nasdaq saw the biggest gains, coming in 1.88% higher at by the 4pm mark to close at 15,783 points. Also seeing more than 1% gains was the S&P 500, which closed 1.32% higher at 4,655 points. Even the Dow -- which was pummeled during Friday's selloff -- was up 0.68% at the close to finish at 35,136 points.
12.05 pm: Tech stocks lead the bounce back in equities
US stocks were sharply higher in noon trading as concerns subsided somewhat over the potential economic impact of the new coronavirus (COVID-19) Omicron variant.
At midday, the Dow rose 217 points to 35,117, while the S&P 500 added 59 points at 4,653 and the tech-heavy Nasdaq climbed 268 points to 15,761.
“We would be aggressive buyers of this pullback. As with the case for Beta and Delta variants, the ‘bark’ has proven worse than the bite in each of those precedent instances,” Fundstrat’s Tom Lee said.
“The market carnage, in our view, will be short-lived and transitory,” Lee added.
Notable movers included shares of Moderna Inc, which gained more than 9%, on top of Friday’s 20% advance, after the biotech company said it could quickly adapt its vaccines to deal with the new COVID-19 variant.
11.05am: Proactive North America headlines:
Forward Water Technologies (TSX-V:FWTC) CEO says the company is seeing 'rapidly growing interest' in various wastewater sectors
CULT Food Science says its portfolio company Biftek reported significant progress in global commercialization of its growth medium supplements
Mountain Boy Minerals reveals new drill results showing high zinc and gold grades at its BA project in British Columbia's Golden Triangle
Ayurcann Holdings sees 1Q revenue surge 137% to C$1.9M as its Canadian market share expansion continues
Montero says compensation claim for damages for the expropriation of Wigu Hill project underway
DGTL Holdings reports renewal of SaaS licensing contract with Nasdaq-listed e-sports gaming client representing 28% of projected revenue
Harvest One Cannabis sees sequential revenue grow by 12% in its fiscal 1Q thanks to strong Dream Water and LivRelief sale
Fireweed Zinc shares begin trading on the OTCQB in the US
Beyond Medical Technologies says Micron Technologies subsidiary is operating two shifts a day to make medical-grade masks as coronavirus escalates
Etruscus Resources (CSE:ETR, OTC:ETRUF) announces change of CEO after Jason Leikam resigns
TRACON Pharmaceuticals (NASDAQ:TCON) notes partners' receipt of approval of Envafolimab in China
Adcore announces renewal of Microsoft Advertising Partner Program for 2022
Harbor Custom Development enters preliminary commitment with Broadmark Realty Capital for $19.1M construction loan
Vanstar Mining Resources set to earn into 75% of Calder-Bousquet project in Quebec after another deal with IAMGOLD
Greenrose Acquisition renamed as The Greenrose Holding Company after closing of business combination with Theraplan
Playgon adds three new operators as it blazes continued growth in player wagering activity
Global Energy Metals making good progress with its Phase I drill program at Lovelock battery metals project in Nevada
Bloom Health announces contract for COVID-19 testing in Alabama schools
Tartisan Nickel intersects high-grade nickel in deepest hole to date at its Kenbridge project in Ontario
BetterLife Pharma subsidiary successfully completes Phase 1 clinical trial with interferon alpha-2b product in COVID-19 patients in Chile, initiates Phase 2
TruTrace Technologies inks global partnership with Laava to focus on blockchain-secured product verification
Orgenesis (NASDAQ:ORGS) and Theracell JV to receive up to €32M from Greek government to accelerate the rollout of therapies
TomaGold reveals final set of Phase I drill results from Obalski that highlights the deposit's mineral potential
Co-Diagnostics (NASDAQ:CODX) says its suite of coronavirus diagnostics not affected by heavily mutated Omicron variant
Irwin Naturals lists on OTCQB Venture Market under 'IWINF'
Numinus Wellness develops proprietary tests for screening psychedelic mushroom compounds
Metal Energy begins trading on the TSX Venture Exchange under the symbol 'MERG'
MAS Gold intersects high-grade gold at its North Lake gold deposit in Saskatchewan
Fobi AI (TSX-V:FOBI, OTCQB:FOBIF) sees fiscal 1Q revenue rise by 293% as it launches new products, partnerships and expands its customer base
Powertap announces licensing deal with Capstone Green Energy
Plurilock sees revenue continue to climb following Aurora Systems acquisition
GR Silver Mining (TSX-V:GRSL) encouraged by first drill results from Loma Dorada target at Plomosas project in Mexico
Whitehorse Gold appoints Gordon Neal as CEO and a director of the company
9.48am; US stocks rebound at open
US stocks started the week higher, bouncing back and correcting from Friday's sharp sell-off, amid fears over the new coronavirus (COVID-19) variant.
The Dow Jones Industrial Average added over 231 points at 35,131 in early deals Monday in New York.
The S&P 500 gained over 46 points at 4,641. The tech-laden Nasdaq exchange added around 210 points at 15,701.
"Whether or not Friday’s big moves were justified is irrelevant now as far as I am concerned," suggested Fawad Razaqzada, market analyst at ThinkMarkets.
"What is important is to figure out whether the market’s direction has now tilted to a more risk-off path. This is something we won’t find out straight away unfortunately, but we will get some ideas by keeping a close eye on price action.
"In particular, pay attention to whether bullish signals will lead to any upside follow-through, or whether they prove to be traps and fail the bulls. Same for bearish price action, said the analyst.
Crude prices also recovered with West Texas Intermediate (WTI) adding over 6% to US$72.37 a barrel. Brent crude gained around 5% at US$76.62.
6.30am: US stocks seen opening higher
US stocks are expected to open higher, recovering from a broad market sell-off as news of the new, rapidly-spreading Omicron variant of coronavirus (COVID-19) affected sentiment globally.
Futures for the Dow Jones Industrial Average rose 0.69% in Monday pre-market trading, while the broader S&P 500 index gained 0.85% and those for the tech-heavy Nasdaq 100 added 1%.
Stocks closed lower in Friday’s holiday-shortened trading session, with the Dow suffering its biggest one-day decline this year.
At the close, the Dow dropped 905 points, or 2.5%, to 34,899, while the S&P 500 eased 107 points at 4,595 and the Nasdaq slipped 354 points to 15,492.
"Last Friday could be designated as 2021’s worst day in financial markets. Risk-off sent global stocks, oil prices, commodity currencies, and Treasury yields sharply lower, reminding investors of the dark days in early 2020," commented Hussein Sayed, chief market strategist at Exinity Group.
"There are more questions than answers at this stage; it could turn out to be better or worse, depending on new findings. But investors today decided to downplay the worst-case scenarios and buy the dips."
Also helping traders put risk back on is the diminishing expectation for US monetary policymakers to tighten policy, Sayed added.
"Interest rates futures are now indicating that the first US rate hike will occur in July compared to June, as of earlier last week. Now markets expect only two rate hikes for 2022, down from three before the Omicron news," he said.
"However, these expectations could change dramatically over the coming weeks as we get to know more about the new variant."