The S&P 500 bounced back on Thursday, recovering from its worst two-day sell off since October 2020. Apparently, traders saw that it might be time to reverse the downturn, not to mention promising economic data helped offset lingering uncertainty around the omicron variant.
The index rose by 1.65% as 11 major companies posted growth. It was the financial, consumer and industrial sectors that led the gain. Meanwhile, the Nasdaq 100 climbed 0.98%.
Trading was volatile last Wednesday because fears over another outbreak dampened sentiment. In addition, Germany imposed another nationwide lockdown, especially restricting those who are not vaccinated. They also announced plans to make Covid-19 vaccinations mandatory.
On the bright side, jobless claims in the US fell below expectations, a hint that the labor market continues to recover.
MKM Partners Managing Director and Trade Specialist Charles Campbell said: "Financial markets across asset classes remain vulnerable to the overall risk of the omicron variant as market participants wait for concrete data on the spread and lethality of this strain."
Other important events for today are:
- report on US employment, production orders and durable goods;
- employment data in Canada.