Wall St. skyrockets as Dow jumps nearly 2% on easing pandemic fear

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Wall St. skyrockets as Dow jumps nearly 2% on easing pandemic fear

On Monday, all three key indices of Wall St. had clawed back sharply as financial and travel associated stocks perked up sharply following encouraging remarks from top US infectious disease expert Dr Anthony Fauci, while a buy-the-dip move helped major stock indices in the Wall Street eke out hefty gains.

Dow led the tally of gains in the day’s Wall Street with industrial and consumer staples sector jumping 1.6 per cent following a dramatic ease in Omicron worries, while Wall Street bellwether S&P 500 had notched sharp gains with energy and utilities sub-sector gaining as much as 1.5 per cent.

In point of fact, in the day’s mass-scale bullish wave in Wall Street was almost entirely catalyzed by remarks from US CDC (Center of Disease Control and Prevention) head Dr. Anthony Fauci who was quoted saying in an interview with CNN that “Thus far it does not look like there's a great degree of severity to it,” delivering an exciting defense for market participants to jump on the bandwagon of a buying-the-dip move.

Nonetheless, apart from an ease in Omicron worries, investors seemed to have brushed aside a downgrade in Goldman Sachs’ US economic growth outlook forecast for 2022, while a rise in US factory orders in October that illustrates a likely robust end of 2021, assisted trade-sensitive Dow to outperform the broader market.

Wall St. jumps as pandemic variant worries subside

Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow torrented 1.87 per cent to 35,227.03 and benchmark S&P 500 gained 1.17 per cent to 4,591.67, while tech-heavy Nasdaq jumped 0.93 per cent to 15,225.15.

Meanwhile, addressing to a sharp uptick in investors’ optimism following encouraging remarks about the newly identified pandemic variant, a chief investment strategist at Baker Avenue Asset Management in San Francisco, King Lip said, “People are less worried about the variant”.