The stock market opened higher on Monday as investors bought the dip and reconsidered the impact of the Covid omicron variant on markets.
The stock market rebounded on Monday, gaining back some of the massive losses from Friday.
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The S&P 500 gained over 1%, while the Dow Jones Industrial Average rose by just over 3%.
The S&P 500 and Nasdaq both fell more than 2% on Friday, which was the market's worst day since October 2020.
The World Health Organization labeled the Covid omicron strain a "variant of concern" after it was first reported in South Africa.
Travel stocks like airlines and cruise lines rebounded on Monday, even though they were the hardest hit in the sell-off.
Pfizer, Moderna, and BioNTech all saw their stock prices jump on Monday as the vaccine makers continued to rise.
TJX Companies, Gap and Home Depot all gained on Monday, as retailers rose on the back of the Black Friday shopping holiday.
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CNBC reported that Jack Dorsey will step down as CEO of the company. According to Forbes, the net worth of Dorsey is $11.8 billion.
Bill Ackman, a billionaire hedge fund manager, said on Sunday that the Omicron virus causes mild to moderate symptoms and is more transmissible. If this is true, this is bullish for markets.
What to watch for.
The economic recovery has been quite impressive and the one thing that could knock it over completely would be a more dangerous variant, says Ryan Detrick, chief market strategist for LPL Financial. Time will tell how worried we should be.
The discovery of a new variant of coronaviruses has caused concern about a new resurgence of cases. The economic recovery may be hampered by new outbreaks. Several vaccine makers said last week that they are working on vaccines to combat the omicron variant, as most health experts have been cautious in predicting how dangerous it will be.
