Stock futures bounced back in Monday’s early morning trading after Friday’s sell-off, while investors are monitoring the latest information on Covid’s omicron variant. After recording the worst day since October 2020, the Dow gained 0.6% while Nasdaq Composite and the S&P 500 also jumped back up.
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As reported by CNBC, last week was a torrid one for stocks as the world came to grips with the existence of the omicron Covid strain, which was categorized as a “variant of concern” by the World Health Organization (WHO).
On Friday, the Dow was down 905 points (2.5%), while the Nasdaq 100 dived 2.2% and the S&P 500 plunged 2.3%. On Monday, however, they were up 0.6%, 1.07%, and 0.82%, respectively.
Keith Lerner, co-chief investment officer at Truist Advisory Services, said in a note Friday: “The pandemic and COVID variants remain one of the biggest risks to markets, and are likely to continue to inject volatility over the next year(s). It’s hard to say at this point how lasting or impactful this latest variant will be for markets.”
According to the WHO, scientists are working to establish whether omicron is more lethal, while preliminary evidence indicates it could be more contagious. The variant displays a great number of mutations, and after originating in Africa it has already been traced in the U.K., Germany, Italy, the Netherlands, Australia, and other countries.
In the U.S., regarding stock future prices, investors are holding their breath on key economic data that will be released this week –including the November jobs report, which is expected to be a positive one.
In Europe, stocks were also on the up Monday with the pan-European Stoxx 600 jumping 0.9% in early trade. According to CNBC, travel and leisure stocks climbed 3% to lead gains, while automotive was down 0.2%.
“Almost all sectors and major bourses traded in positive territory, with stocks looking to rebound from Friday’s sell-off,” the news outlet reports, while “Oil prices were higher during early European trading hours, after Brent crude dropped as much as 13% on Friday, its worst day this year.”
In November, the business climate and economic sentiment improved in the euro zone. Reuters reports investors are taking a “more balanced view” on any possible menace related to the omicron strain.