US futures jump as fears about Omicron COVID-19 variant cool after Friday's massive stock sell-off

The US stock market looked set to go up on Monday.

Spencer Platt is a photographer.

US futures rose along with European shares Monday, as investors' fears about the new Omicron coronaviruses variant cooled somewhat.

The S&P 500 futures were up 0.6%, the Dow Jones futures were up 0.4%, and the Nasdaq 100 futures were up 0.8% at the start of trading.

The S&P 500 fell 2.27% in shortened trading on Friday, the most since February, as the discovery of the new Omicron strain raised the prospect of fresh lockdowns and travel bans. Concerns were raised about the impact of that.

In Europe, the Stoxx 600 rose after falling on Friday. The UK's benchmark index climbed.

The Asian stocks fell less on Friday. Japan's Nikkei 225 closed 1.63% lower, while China's CSI 300 fell 0.18%.

Scientists were racing to find out more about the Omicron variant, which was discovered in southern Africa, after the Monday rally.

A South African doctor said the symptoms of the Omicron variant have been very mild, which may have helped investors.

Moderna's chief medical officer told the "Andrew Marr Show" that large quantities of new, Omicron-adjusted vaccines could be ready in early 2022. He said that they could move very fast.

Scientists are still trying to find out if Omicron is more severe and lethal than other strains. More information will emerge in the coming days and weeks, according to the World Health Organization.

The investors appeared to be following the same strategy that has worked out well this year, and that was to treat the sell-off as a buying opportunity. The S&P 500 is up 22% in 2021, even after the recent losses.

The head of US equity strategy at Royal Bank of Canada said in a note that she would not be surprised if Friday's plunge was the low point for stocks.

Buying the dip is how the COVID playbook ends. The lessons of March 2020 and Fall 2021 may help to limit downside.

The Federal Reserve is expected to raise interest rates in July rather than June.

Richard Hunter, head of markets at Interactive Investor, said that the current situation should delay the pressure on monetary tightening.

Oil prices rebounded after tumbling Friday. The global benchmark price for oil was up 4.11% to $74.57 a barrel, while the price of oil in the US was up 4.7% to $71.33 a barrel.

Cryptocurrencies were up on the Bitstamp exchange after dropping on Friday.

Bond yields rose as investors moved away from safe-haven assets. The yield on the 10-year US Treasury note went up. Prices affect yields.

Despite the rise in stocks, analysts warned that there are still many risks. Hunter said the global economic recovery is set for an "unwelcome detour" as the spread of Omicron causes countries to react strongly with new restrictions.

"However, the weeks ahead are fraught with danger for investors, with traders now likely to see any major updates associated with this new variant as a priority over most other economic data points," said Joshua Mahony, senior market analyst at trading platform IG.

Business Insider has an original article.