Top line

The stocks reversed their course on Thursday, making up some of their losses from the previous day in volatile trading as investors continue to assess the potential impact of the new Omicron variant on the US economic recovery.

Important facts

The Dow Jones Industrial Average rose 1.8% over 600 points to 34,640, while the S&P 500 rose 1.4% to 4,577 and the Nasdaq Composite rose 0.8% to 15,381.

The major indices collapsed on Wednesday after the CDC confirmed that the first case of the new Covid-Omicron variant had arrived in the United States.

Thursday’s rally came as stocks shrugged at reports of a second confirmed US Omicron case discovered in Minnesota, where investors bought the dip.

Market volatility has increased since last Friday as investors rate the new variant: Wall Street’s favorite fear meter, the CBOE volatility index, recently rose to over 30 – a level that’s seen since the markets collapsed in January amid a winter surge in Covid -19 cases was no longer reached.

Travel stocks were among the biggest gains, with airline, hotel and cruise line stocks rebounding from Wednesday’s sell-off: Delta Air Lines, Hilton Worldwide and Norwegian Cruise Line all rose more than 6%.

The broader market also received a boost from solid economic data, with the number of Americans receiving state unemployment benefits plummeting to its lowest level since March 2020, the Labor Department said Thursday.