Stocks rallied back midday Monday, with the Dow Jones Industrial Average up more than 300 points after paring bigger early gains.
President Joe Biden said economic lockdowns in response to the omicron Covid variant are currently off the table.
“If people are vaccinated and wear their masks, there’s no need for lockdowns,” Biden said at a press conference Monday. Biden also said there would be no new travel restrictions.
Stocks were coming off a holiday-shortened session Friday in which the dow posted its worst day since October 2020. The Dow dropped 905 points or 2.5 percent. The S&P 500 tumbled 2.3 per cent and the Nasdaq Composite slipped 2,2 per cent.
The Dow Jones Industrial Average gained 236.6 points to 35,135.94. The S&P 500 added 1.3 percent to 4655.27, and the tech–focused Nasdaq Composite rose 1.9% to 15,782.83. The small-cap benchmark Russel 2000, full of its most economically sensitive, fell 0.2 per cent to 2,241.98.
Electric vehicle Tesla (TSLA) rallied 5.1% Monday. EV peer Rivian (RIVN) surged nearly (RIVN) surged nearly 7 percent, while Lucid Motors (LCID) gains 6.65 percent. Chinese EV leader Li Auto (LI) bolted higher after delivering earnings, while Xpeng Motors (XPEV) edged higher,
Dow Jones futures dived 450 points early Tuesday, as Moderna chief Stephane Bancel predicted existing vaccines will be less effective for the Omicron variant. The stock market bounced after Friday’s omicron Covid–19 sell–off, as President Joe Biden ruled out new lockdowns. Electric–vehicle stocks Li Auto, Lucid Motors, Rivian, and Tesla raced higher Monday.
Early Tuesday, Moderna (MRNA) CEO Stephane Bancel said he expects existing vaccines to be less effective against the new omicron variant, in an interview with the Financial Times.
“While it is too early to have definitive data, early reported data suggest that the Omicron virus causes ‘mild to moderate symptoms (less severity) and is more transmissible,” Bill Ackman of Pershing Square Capital Management tweeted Sunday evening. “If this turns out to be true, this is bullish, not bearish for markets.”
Moderna (MRNA) vaulted more than 10% in heavy trade to its highest level in nearly two months. MRNA stock soared 20.1% on Friday for its first close above the 50-day line since Sept. 27. Biotech’s shares are about 28% off their 52-week high.
But Pfizer (PFE) reversed slightly lower after erasing a 2% gain. On Friday, it soared 6% to break out past a 51.96 buy point of a cup base.
Shares remain in the buy range, which tops out at 54.56. Pfizer’s 98 composite Ratings lead IBD’s 30 stock ethical drug group. Pfizer was featured Friday as the IBD Stock Of The Day.
Pfizer’s Covid vaccine partner, BioNTech (BNTX), leaped more than 5% early Monday before halving, then recovering most of its gains. On Friday, the German biotech gapped up and soared 14%.
Li Auto (LI) surged more than 7% in fast turnover to a four-month high. Shares cleared a 34.94 buy point of a cup with a handle early Monday. Before slipping slightly below the entry. The buy zone goes to 36.68. Ahead of the open, the China-based electric SUV maker reported strong sales results.
Among U.S. EV stocks, Tesla (TSLA) rallied nearly 5% Monday, on track for a rebound after Friday’s 3% drop. TSLA stock remains sharply above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730. The chart also showed an alternate entry at 900.50.
Twitter (TWTR) jumped 5% in huge volume amid reports that co-founder and CEO Jack Dorsey may be planning to step down. It’s unclear when and why or who could replace him. Dorsey is also CEO of payments company Square (SQ).