The stock market opened higher on Monday – rebounding from its biggest sell-off of the year on Friday – as investors bought the slump and reevaluated the potential impact of the Covid-Omicron variant on the markets.
The Dow Jones Industrial Average was up 0.3% while the S&P 500 was up 1% and the Nasdaq Composite was up 1.5%.
Stocks rebounded from the holiday-cut session on Friday, the market’s worst day since October 2020: the Dow slipped over 900 points to around 2.5%, while the S&P 500 and Nasdaq fell 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 largely rebounded on Monday, particularly travel stocks like cruise lines and airlines.
Vaccine manufacturer stocks, which soared on Friday amid the Omicron news, continued to climb Monday as Moderna stock rose nearly 10%, Pfizer nearly 2%, and BioNTech nearly 3%.
Retailers also rose on the Black Friday shopping vacation, with stocks in TJX Companies, Gap and Home Depot seeing slight gains on Monday.