By
Bhushan Akolkar
April 25th, 2024
There are key industries that showcased growth and downtrend as the Omicron concerns stirred a new way of precautions including restrictions amongst governments.
The last trading days of the year are often denoted as Santa Rally, and the US stock market is showcasing this outlook with gains across the board.
The S&P 500 (INDEXSP: .INX) saw the largest growth percentage, ticking 1.38% to 4,791.19, a figure that marked the index’s 69th record close for 2021. The Dow Jones Industrial Average (INDEXDJX: .DJI) also inked a gain of 0.98%, adding over 351 points to close Monday’s Santa Rally Genesis at 36,302.38. The tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) was also lit up, soaring by 1.39% atop a 217.89 point gain to 15,871.26.
The small-cap index Russell 2000 Index (INDEXRUSSELL: RUT) also inked a 0.89% to 2,261.46. The rate of pace at which investors backed stocks and stirred this rally showcases the tone-deaf approach to the continuous surge in the Omicron variant of the coronavirus. This is perhaps linked to the comment from analysts from JPMorgan Chase & Co (NYSE: JPM) that the Omicron variant is unlikely to hamper growth as projected.
“We do not expect Omicron to impact the growth outlook in any significant way, but rather it is likely to accelerate the end of the pandemic,” the bank’s Dubravko Lakos-Bujas said in a note Monday.
This sentiment was also echoed by a recent study that showed the Omicron variant presents a lower risk of hospitalization when compared with others like the Delta variant. FAANG stocks showcase mixed growth trends on Monday with Meta Platforms Inc (NASDAQ: FB) soaring 3.26% to $346.18. While Apple Inc (NASDAQ: AAPL) gained 2.30% to $180.33, Amazon.com Inc (NASDAQ: AMZN) traded 0.82% lower and closed out at $3,393.39. Netflix Inc (NASDAQ: NFLX) also shed slight gains while Alphabet Inc (NASDAQ: GOOGL) closed out at 0.67%.
US Stock Market Rally and the Sectoral Performance
There are key industries that showcased growth and downtrend as the Omicron concerns stirred a new way of precautions including restrictions amongst governments. Airlines stocks traded in the red as flights were canceled during the holiday season in order to wade off Omicron spread.
Delta Air Lines Inc (NYSE: DAL) slipped 0.76% and American Airlines Group Inc (NASDAQ: AAL) dropped 0.49%. Energy stocks remained the biggest gainers for the year as APA Corp (NASDAQ: APA) added 7.29%, Devon Energy Corp (NYSE: DVN) gained 6.05%, and Diamondback Energy Inc (NASDAQ: FANG) rose 4.91% to $111.14.
Despite the mixed reaction and investor response, US top infectious disease expert, Dr. Anthony Fauci has warned that responsible actors should not get complacent as the Omicron variant is poised to keep spreading.
“Every day it goes up and up. The last weekly average was about 150,000 and it likely will go much higher,” Fauci said on ABC’s “This Week.”