The stock market reversed course Thursday, clawing back some of their losses from the previous day, as investors continued to assess the impact of the new omicron variant on the U.S. economic recovery.
Markets are choppy amid news about the omicron variant.
Richard Drew is an Associated Press photographer.
The S&P 500 gained 1.4% to 4,577, while the Dow Jones Industrial Average rose 1.8% to 34,640.
The first case of the new Covid omicron variant had arrived in the United States and caused the major indexes to plunge.
Thursday's rally came as stocks shrugged off reports of a second confirmed U.S. omicron case, discovered in Minnesota, with investors buying the dip.
The CBOE Volatility Index spiked above 30 for the first time since January as investors assessed the new variant of Wall Street's preferred fear gauge.
Delta Air Lines, Hilton Worldwide and Norwegian Cruise Line all rebounded from Wednesday's sell-off, and were among the biggest gainers.
The number of Americans receiving state unemployment benefits fell to their lowest level in more than a year, the Labor Department said Thursday.
Ed Moya, senior market analyst at Oanda, said that Wall Street will likely remain COVID-variant headline driven until a clear assessment over this wave can be made. He predicts that the market will react quickly to any negative updates regarding omicron, inflation readings or supply chain issues.
The key background is.
After the WHO labeled omicron a "variant of concern" last Friday, the Dow plunged 900 points, but rebounded slightly Monday after President Biden said there would be no need for new lockdowns. On Tuesday and Wednesday, the index fell 650 points and 450 points, respectively.
What to watch for.
The Federal Reserve warned this week that omicron could affect the economic recovery, and markets are likely to remain choppy. The use of the word "transitory" when describing inflation has been dropped by the Fed Chairman.
The CDC confirmed the first US case of Omicron variant.
What Wall Street's Biggest Banks Predict for the Future.
Powell takes a Pessimistic view on inflation.
The Federal Reserve is concerned about the impact of Omicron Impact.
