U.S. stocks climbed Tuesday, resuming the seesaw action that has become markets’ signature since the emergence of the Omicron Covid-19 variant.
Investors have a mix of concerns heading into the end of the year. The rise in Omicron cases could prolong the global supply-chain disruptions that have added to inflation. However, signs that vaccine boosters offer protection against Omicron have bolstered hopes that its impact on growth and travel can be mitigated. President
will provide details about the government’s plan to tackle rising cases during a press conference at 2:30 p.m. ET.
Meantime, investors are hoping that a version of Democrats’ $2 trillion spending package could still be passed. Senate Majority Leader Chuck Schumer said Democrats would take up the legislation early next year, despite opposition from Sen. Joe Manchin.
The S&P 500 advanced 0.7%, the Nasdaq Composite rose 0.6%, and the Dow Jones Industrial Average gained 0.8%. All three indexes fell in the three previous trading sessions, pushed down by concerns over new Covid-19 lockdowns.
shares fell 4.5% after the food company reported a quarterly profit that missed expectations.
shares gained 8.3% after the memory-chip company posted strong results and provided better-than-expected forecasts.
shares rose 5.9% after the sneaker maker posted earnings and sales that topped analysts’ expectations, despite persistent supply-chain challenges.
Some investors worry that a rise in Omicron cases could stall economic growth.
Photo:
Spencer Platt/Getty Images
“It seems we’re continuing to get this risk-on, risk-off environment. Investors are kind of torn,” said Louise Dudley, an equities portfolio manager at Federated Hermes. Despite heightened uncertainty, investors are still incentivized to buy stocks, she said, since government bonds don’t offer enticing yields.
The yield on the benchmark 10-year Treasury note ticked up to 1.467% Tuesday from 1.418% Monday. Yields and prices move inversely.
The Turkish lira leapt as much as 18% against the dollar Tuesday, after a monthslong collapse. President
Recep Tayyip Erdogan
announced a rescue plan to encourage Turks to put their money back into the currency. But in a sign that relief was limited, Turkey’s stock market resumed its multiday slide after news of the plan, triggering two circuit breaker halts.
Bitcoin—the world’s largest cryptocurrency by market value—gained 3.9% to $48,833.
Front-month Brent crude futures, the benchmark in global oil markets, rose 2.3% to $73.12 a barrel.
Overseas, the Stoxx Europe 600 rose 1.3%. Asian indexes closed with gains. Japan’s Nikkei 225 added 2.1% and China’s Shanghai Composite gained 0.9%. South Korea’s Kospi added 0.4%.
Write to Caitlin Ostroff at caitlin.ostroff@wsj.com
Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8