NY Stock Market, 'Omicron Alert Eases' Three Consecutive Days of Rally

Apple Approaches $3 Trillion Market Capitalization

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Major indices on the New York Stock Exchange rose for the third consecutive day, shaking off concerns over the Omicron variant and approaching record highs within reach.

On the 7th (local time), the Dow Jones Industrial Average rose 0.1% to 35,754.75, the S&P 500 increased 0.3% to 4,701.21, and the Nasdaq closed up 0.6% at 15,786.99.

CNBC reported that the Dow is down 2.2% and the Nasdaq 2.6% from their all-time highs, with investors betting that the impact of the Omicron variant will not be significant.

Investor sentiment stabilized after Pfizer announced that its COVID-19 vaccine booster shot can prevent most infections from the Omicron variant.

On the day, Moderna rose 0.3%, while Pfizer fell 0.6%.

As risk aversion eased, the yield on the U.S. 10-year Treasury note rose above 1.5% for the first time in a week.

Apple showed strong gains for consecutive days, rising 2.2%. Apple's market capitalization is approaching $3 trillion, heading toward a new record.

Roku surged 18% following confirmation that it will maintain its YouTube channel.

Shares of social media companies such as Twitter and Meta also showed strength. Twitter rose 2.8% after its new CEO announced plans to double revenue by 2023. Meta increased 2.4% after allowing employees to delay their return to the office.

Travel-related stocks continued their strong performance. Cruise line Norwegian surged 8.2%, while Carnival and Royal Caribbean also posted strong gains of 5%.

Stocks in the airline and hotel sectors rose more than 4%, recovering losses caused by Omicron.

In contrast, barbecue grill maker Weber's stock fell 5.1%.

Meme stock GameStop declined 2.3% during regular trading and fell an additional 3.8% in after-hours trading following its earnings announcement.

Although the market showed a strong rebound, some voices warn to be cautious ahead of next week's Federal Reserve (Fed) Federal Open Market Committee (FOMC) regular meeting. Analysts suggest that if the Fed accelerates the pace of asset purchase tapering to combat inflation, market turmoil could ensue. Fed Chair Jerome Powell has indicated that the meeting will discuss accelerating the tapering pace.

David Kelly, Chief Global Investment Strategist at JP Morgan, forecasted, "Considering the FOMC uncertainty next week, it will be difficult for the market to maintain the current rally."