- Tech stocks led the market higher on Monday as investors continue to assess the threat of the Omicron COVID-19 variant.
- Pfizer and Moderna said they were testing the effectiveness of current vaccines against the variant.
- West Texas Intermediate crude oil jumped as much as 6.74% to $72.74 per barrel.
US stocks surged on Monday, with the Nasdaq 100 up nearly 2%, as investors recovered most of the losses seen during last Friday's shortened holiday trading session.
The 2% slide in stocks on Friday was sparked by the identification of a new COVID-19 variant, Omicron, which is thought to be more contagious than prior virus mutations like Delta.
But investors reassessed the risks on Monday after Moderna and Pfizer said they are testing the effectiveness of their current vaccines against the new strain, as well as new vaccines specifically targeting the Omicron variant. If needed, new vaccine formulations could be ready by early 2022, according to Moderna.
Here's where US indexes stood at the 4:00 p.m. ET close on Monday:
- S&P 500: 4,655.27, up 1.32%
- Dow Jones Industrial Average: 35,135.94, up 0.68%
- Nasdaq Composite: 15,782.83, up 1.88%
Oil prices followed the path of stocks, rebounding sharply in Monday trades following Friday's rout, as early reports suggesting only mild symptoms from the Omicron variant eased concerns of potential country lockdowns. JPMorgan thinks oil prices could ultimately hit $150 per barrel.
One investor who sees a bullish setup for equities is Bill Ackman, who said on Twitter that if Omicron symptoms are indeed mild, it would be bullish for stocks and bearish for bonds.
Shares of Moderna jumped 10% on Monday and extended their two-day gain to more than 30% as the drugmaker revealed its own vaccine plans for the Omicron variant. The surge helped stem a 45% loss from its record high of nearly $500.
Twitter spiked more than 10% after CEO and co-founder Jack Dorsey said he would step down as CEO of the company effective immediately. He plans to step down from the board early next year. Shares of Twitter pared its gains and finished the day down more than 2%.
AMC Entertainment slipped 2% on Monday after the movie theater chain said it would offer 86,000 NFTs to early ticket buyers of the upcoming Spider-Man movie.
West Texas Intermediate crude oil jumped as much as 6.74% to $72.74 per barrel. Brent crude, oil's international benchmark, rose as much as 5.65% to $76.83 per barrel.
Gold rose as much as 0.13% to $1,787.90 per ounce.