Stocks of companies linked to the economic recovery – including airlines, cruises, and casinos – drove the stock market higher on Monday, with the Dow rising nearly 2% as investors raised concerns about the Covid-Omicron- Defended variant.
The Dow Jones Industrial Average rose 1.9% to almost 650 points, while the S&P 500 rose 1.2% and the Nasdaq Composite rose 0.9%.
Stocks rebounded sharply on Monday from last week’s sell-off when all three major indices ended in the red and volatility in the stock markets increased due to the new Covid-Omicron variant.
While markets took a hit after the first Omicron case was reported in the US last Wednesday, stocks have recently made up some losses as investors moved into stocks of companies that continue to benefit from an economy reopening.
Airline stocks were among the biggest gains on Monday, with United up 8.3%, American 7.8% and Delta 6%.
The stocks of major cruise lines and casino operators also rose: Norwegian Cruise Line, Royal Caribbean Group and Carnival all rose more than 8%, while Wynn Resorts rose 6%.
Big tech stocks – many of which are still relatively highly valued – meanwhile continued to struggle, extending last week’s losses as investors dropped their stocks.