New York (CNN Business)The stock market’s volatility is showing no signs of letting up. US equities are rallying on Thursday, attempting to rebound from the prior two days of steep losses.
All three major indexes are in green and then some: The Dow (INDU) is up more than 650 points, or 1.9%, in the early afternoon, while the broader S&P 500 (SPX) is up 1.5%. The tech-heavy Nasdaq Composite (COMP) is lagging behind slightly, p “only” 0.7%.
The rocky ride in the market started last week Friday when concerns about the newly identified Omicron variant spooked investors, inciting memories of the highly infectious Delta variant, which weighed on the recovery over the summer.
But it’s far too early to tell if the new variant will have the same effect. Meanwhile, investors can distract themselves with perhaps more pressing matters including whether the US government will run out of money this week. Lawmakers also still need to agree a deal to raise the debt limit.
On top of that, Federal Reserve Chairman Jerome Powell dropped a bombshell Tuesday, announcing that the central bank might end its pandemic era stimulus program faster than expected. For the stock market, which prefers easy money policies, that wasn’t good news.
The three major indexes are still in the red for the week, so investors have a little further to go to recoup all the losses they may have incurred during the recent selloffs.
That could be one explanation for Thursday’s upswing: investors are picking stocks up at cheaper prices.
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