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The stock market closed higher on Monday – rebounding from its biggest sell-off of the year on Friday – as investors reevaluated the potential impact of the Covid-Omicron variant on the markets after optimistic comments from President Joe Biden.

Important facts

The Dow Jones Industrial Average rose 0.8% to over 250 points, while the S&P 500 rose over 1.4% and the Nasdaq Composite rose 1.9%.

The market rebounded after President Joe Biden said in a press conference Monday that “no lockdown is required” in response to the new variant of Covid-Omicron.

The stocks rebounded from the holiday-cut session on Friday, the worst day in the market since October 2020: the Dow slipped over 900 points to around 2.5%, the S&P 500 and Nasdaq by more than 2.2%.

The sale on Friday came after the World Health Organization described the strain of Covid-Omicron, which was first reported in South Africa and is now appearing in other countries around the world, as a “worrying variant.”

While that news scared investors last week, stocks that were hardest hit by the sell-off – namely, travel stocks like cruise lines and airlines – largely rebounded on Monday.

Vaccine maker stocks, which soared on Friday amid the Omicron news, continued to surge on Monday as Moderna rose over 11% and BioNTech rose 4%.