Stocks rebounded Monday morning and shook off some of the heavy losses driven by the emergence of the omicron variant of coronavirus.
The Dow Jones Industrial Average opened Monday with a gain of 368 points, rising almost 1.1 percent after closing Friday with a loss of 905 points. The S&P 500 index was up 1.5 percent and the Nasdaq composite was up 1.2 percent after closing with losses of 2.3 percent and 2.2 percent respectively.
The stock market suffered its worst day of losses since October 2022 last week on Friday after officials at the World Health Organization identified a new, highly transmissible variant of COVID-19 as a “variant of concern.” Health experts say that while the omicron variant appears to be more infectious than previous variants, they do not yet know if it causes more serious disease or if it is more resistant to COVID-19 vaccines.
Stocks in sectors heavily affected by the pandemic led much of Monday’s rebound after plunging on Friday. Shares of cruise lines, banks and financial services companies, technology firms, manufacturers, hotels and travel companies rose sharply Monday morning, far exceeding losses taken by some electronic entertainment and commerce companies.
This developing report will be updated.