Traders work on the floor of the New York Stock Exchange (NYSE), December 3, 2021.
Brendan McDermid | Reuters
U.S. stock futures were steady in overnight trading on Tuesday after stocks continued their upward climb from the omicron sell-off.
Dow futures rose 20 points. S&P 500 futures gained 0.1% and Nasdaq 100 futures rose 0.12%.
On Tuesday, the S&P 500 and Nasdaq Composite posted their best days since March. The Dow Jones Industrial Average rallied 492 points helped by gains in Apple, Salesforce and American Express. The S&P 500 also registered a gain, climbing 2.1%. The tech-focused Nasdaq Composite was the stand-out performer after gaining more than 3%.
All 11 sectors were positive on Tuesday, led by Tech, which rose 3.5%.
Stocks have recovered this week from last week’s market rout on fears of the omicron Covid variant and a possible faster-than-expected taper of the Federal Reserve’s bond buying program.
Technology stocks have lead the way, with the Nasdaq up 4% since Monday. The Dow and S&P 500 notched their largest two-day gain since November 2020.
JPMorgan’s Chief Global Markets Strategist Marko Kolanovic said Tuesday that investors can trust this rebound in stocks.
“When the omicron news hit the tape on Thanksgiving night there was clearly an overreaction,” said Kolanovic, who is also an Institutional Investor Hall of Fame strategist, on CNBC’s “Halftime Report” Tuesday. “Markets sold off very rapidly on news that was not very reliable,” he added. “And now its basically recovering those back.”
This week’s gains have put the major averages back within striking distance of their record highs. The Dow is 2.3% from its record and the S&P 500 and Nasdaq are 1.2% and 3.2% from their all-time highs, respectively.
On Wednesday, the Bureau of Labor Statistics will release October’s Job Openings and Labor Turnover Survey. Economists polled by Dow Jones are expecting there were 10.6 million open positions in October, up from 10.4 million in September.