By DAMIAN J. TROISE
AP Business Writer
Stocks rose on Wall Street Tuesday after three days of losses brought on by worries over the spread of the omicron variant and lingering concerns about rising inflation.
The S&P 500 index rose 0.8% as of 11:33 a.m. Eastern. The Dow Jones Industrial Average rose 385 points, or 1.1%, to 35,316 and the Nasdaq rose 1%.
Technology stocks posted solid gains. Micron Technology jumped 9.6% after the chipmaker gave investors an encouraging profit forecast.
Nike, one of the 30 stocks in the Dow, jumped 6.4% after turning in strong quarterly results.
Bond yields gained ground. The yield on the 10-year Treasury rose to 1.48% from 1.42% late Monday.
Banks also rose. Citigroup gained 1.8%.
U.S. crude oil prices rose 3.1% and helped send energy stocks higher. Chevron rose 1.2%.
Small-company stocks rose more than the rest of the market, a signal that investors were feeling a bit more optimistic about the economy. The Russell 2000 rose 2.1%.
The gains follow several weak days for major indexes as investors assess the impact from skyrocketing cases of COVID-19 as the omicron variant spreads rapidly. Nations in Europe and Asia have implemented a variety of restrictions aimed at curtailing the spread even further and that has investors worried about the impact to the global economy.
“We’re not out of the woods yet and we’re likely going to see more volatility through the end of the year,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.
The latest coronavirus wave adds to lingering worries about rising inflation’s impact on economic growth. Supply chain shortages and higher raw material costs have been hitting businesses, which have passed the higher costs off to consumers. U.S. consumer prices rose 6.8% in November from a year earlier, which marks the fastest rise in inflation in nearly four decades.
Rising inflation has also prompted the Federal Reserve to hasten its withdrawal of aid to the markets and economy and put interest rate increases on the radar for investors in 2022. The prospect of higher interest rates has added some choppiness to the broader market as investors consider shifting money around, particularly from high-value technology stocks.
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