US stock market growing sharply on news weakening Omicron virus-Budrigan Ltd
Budrigantrade.com - On Tuesday, U.S. stock markets opened sharply higher as traders rushed to buy the recent dip in the hope that the new Covid-19 variant that caused it won't actually disrupt the economy.
The Dow Jones Industrial Average was up 409 points, or 1.2 percent, at 9:45 AM ET (1445 GMT), while the S&P 500 was up 1.6 percent and the Nasdaq Composite was up a whopping 2.2%.
The Omicron variant, which was first identified in South Africa, is thought to cause a milder form of the disease than the Delta variant, which has been blamed for most of the 5.3 million Covid-19-related deaths worldwide in the past 21 months. It is possible to accelerate the development of herd immunity and bring the pandemic to an earlier end if a strain gains dominance due to its higher infectiousness while placing less stress on global public health systems.
Intel (NASDAQ:) was one of the early players. After announcing that it would spin off its Mobileye (F:0ME) venture, INTC's (NYSE:INTC) stock surged by 5.0%, helping the company raise funds for an expensive manufacturing capacity expansion. According to a report from Reuters, Mobileye could be worth more than $50 billion, which is more than three times what Intel paid for it just four years ago. Additionally, this would imply that Mobileye, whose focus is on developing chips for the autonomous vehicle market, now represents approximately a quarter of Intel's total market value.
An additional major rival of Intel made the news earlier: OTC: Samsung Electronics In an effort to revive its faltering mobile business, SSNLF) stated that it would restructure its structure and appoint a third co-CEO. Samsung (KS:005930) has also committed to a $17 billion factory in Texas and is investing heavily in new chipmaking capacity. Samsung ADRs had not yet entered over-the-counter markets, but they had already closed higher by 1.4% in Seoul.
Tech megacaps dominated the action; in recent days, they have experienced a rare sell-off as a result of the Federal Reserve's threat to accelerate monetary tightening and Omicron's emergence as a threat to a new economic slowdown. Apple (NASDAQ: by 10 a.m. ET) AAPL) rose 2.9%, and Amazon (NASDAQ: AMZN) stock was up 2.3% and Microsoft (NASDAQ: The last of the three was also supported by reports that Microsoft is planning to raise prices for its flagship Office suite of applications, at least for customers who choose to pay their bills through a monthly subscription. MSFT) stock was up 1.9%. Tesla, Inc. With a gain of 4.1%, TSLA) stock climbed back above $1,000.
American Airlines, which trades on the NASDAQ: After the company announced that long-serving CEO Doug Parker would resign in March to be succeeded by current president Robert Isom, AAL) stock rose 3.4% to its highest level in two weeks.