(Bloomberg) — U.S. stocks rebounded with equities around the world on optimism the omicron variant won’t derail global growth. Treasuries fell, sending two-year yields to the highest since March 2020.
The S&P 500 jumped more than 1% to the highest level since the emergence of the new virus strain upended markets Nov. 26. Technology shares that bore the brunt of last week’s selloff led the rebound, with retail favorites from GameStop Corp. to Nvidia Corp. jumping at least 3%. Chinese shares led a rally in emerging markets after the nation’s policy makers moved to expand support for the economy. Bitcoin rallied, the dollar was flat and crude surged above $71 a barrel in New York.
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Risk assets are recovering this week after initial data showed the surge in omicron cases hasn’t overwhelmed hospitals and as China’s moves help settle markets whipped by bouts of volatility. Technology stocks had sold off last week amid a combination of concerns about the variant and the Federal Reserve’s hawkish tilt.
“This morning’s rally is being fueled by the belief that the omicron variant will not create many problems for the global economy … and that China has pledged measure to support economic growth,” wrote Matt Maley, chief market strategist for Miller Tabak + Co. “If those were the reasons why the market has seen such a big increase in volatility since Thanksgiving, we’d agree the worst is likely over and that investors should jump back into the market with both feet.”
On the data front, the U.S. trade deficit narrowed while third quarter productivity fell. Private consumption was the largest contributor to the euro area’s economic expansion in the third quarter. U.K. house prices hit an all-time high in November, and China’s exports grew faster than expected to a record on external demand and an easing power crunch.
Meanwhile, the United Arab Emirates will move its weekend to Saturday and Sunday, breaking ranks with the rest of the Gulf region as it …….