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U.S. stocks closed sharply higher on Monday to start the week on a high, with economically sensitive stocks rallying as investors shed fears of the Omicron variant of the coronavirus. The Dow recorded its biggest daily point gain in more than a year and erased its last week’s losses. All the three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1.9% or 646.95 points to close at 35,227.03 points, recording its biggest daily points gain since Nov 9, 2020 and biggest percentage gain since Mar 1, 2021.
The S&P 500 climbed 1.2% or 53.24 points to end at 4,591.67 points, registering its best close in a week. Consumer staples, industrial and communication stocks were the best performers.
The Consumer Staples Select Sector SPDR (XLP) added 1.8%, while the Industrials Select Sector SPDR (XLI) gained 1.7%. The Communications Select Sector SPDR (XLC) also gained 1.7%. All the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq advanced 0.9% or 139.68 points to close at 15,225.15 points. The index at one point of the day had hit a low of 14,931.61 points but then rose to register its biggest intraday point and percentage gain since Nov 29.
The fear-gauge CBOE Volatility Index (VIX) was down 11.38% to 27.18. A total of 11.96 billion shares were traded on Monday, higher than the last 20-session average of 11.55 billion. Advancers outnumbered decliners on the NYSE by a 2.82-to-1 ratio. On Nasdaq, a 1.71-to-1 ratio favored advancing issues.
Investors Shrug off Omicron Fears
Last week, all the three major benchmarks ending in negative territory. However, on Monday investors came back with renewed vigor and shed off growing worries of the Omicron variant of the COVID-19 virus. Investors also put aside concerns over the stance the Fed takes in tapering its financial support although experts believe that the volatility will continue.
On Sunday, Dr. Anthony Fauci, Joe Biden’s Chief Medical Advisor, said in an interview that so far the initial reports on Omicron variant of the coronavirus suggest that it might not be as severe as it was earlier being thought. This somewhat added to the confidence of the investors sending stocks on a rally.
Sectors that are linked to the economic reopening and travel-related stocks advanced on Monday. Shares of Caterpillar Inc. (CAT - Free Report) gained 1.8%, while Chevron Corporation (CVX - Free Report) advanced 1.6%.
No major economic data was released on Monday.
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Stock Market News for Dec 7, 2021
U.S. stocks closed sharply higher on Monday to start the week on a high, with economically sensitive stocks rallying as investors shed fears of the Omicron variant of the coronavirus. The Dow recorded its biggest daily point gain in more than a year and erased its last week’s losses. All the three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1.9% or 646.95 points to close at 35,227.03 points, recording its biggest daily points gain since Nov 9, 2020 and biggest percentage gain since Mar 1, 2021.
Shares of The Goldman Sachs Group, Inc. (GS - Free Report) gained 1.7%, while The Boeing Company (BA - Free Report) rallied 3.7%. Boeing holds a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 climbed 1.2% or 53.24 points to end at 4,591.67 points, registering its best close in a week. Consumer staples, industrial and communication stocks were the best performers.
The Consumer Staples Select Sector SPDR (XLP) added 1.8%, while the Industrials Select Sector SPDR (XLI) gained 1.7%. The Communications Select Sector SPDR (XLC) also gained 1.7%. All the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq advanced 0.9% or 139.68 points to close at 15,225.15 points. The index at one point of the day had hit a low of 14,931.61 points but then rose to register its biggest intraday point and percentage gain since Nov 29.
The fear-gauge CBOE Volatility Index (VIX) was down 11.38% to 27.18. A total of 11.96 billion shares were traded on Monday, higher than the last 20-session average of 11.55 billion. Advancers outnumbered decliners on the NYSE by a 2.82-to-1 ratio. On Nasdaq, a 1.71-to-1 ratio favored advancing issues.
Investors Shrug off Omicron Fears
Last week, all the three major benchmarks ending in negative territory. However, on Monday investors came back with renewed vigor and shed off growing worries of the Omicron variant of the COVID-19 virus. Investors also put aside concerns over the stance the Fed takes in tapering its financial support although experts believe that the volatility will continue.
On Sunday, Dr. Anthony Fauci, Joe Biden’s Chief Medical Advisor, said in an interview that so far the initial reports on Omicron variant of the coronavirus suggest that it might not be as severe as it was earlier being thought. This somewhat added to the confidence of the investors sending stocks on a rally.
Sectors that are linked to the economic reopening and travel-related stocks advanced on Monday. Shares of Caterpillar Inc. (CAT - Free Report) gained 1.8%, while Chevron Corporation (CVX - Free Report) advanced 1.6%.
No major economic data was released on Monday.