Stocks Rebound After Slump; Treasuries Decline: Markets Wrap

(Bloomberg) — Stocks rose after the biggest three-day drop since September amid appetite for risk assets. Treasuries fell.

Energy shares led gains in the S&P 500. Micron Technology Inc., the largest U.S. maker of memory chips, jumped on an upbeat forecast, while Nike Inc. rallied as revenue in North America increased, offsetting a drop in China. Pfizer Inc. and Merck & Co. traded off session lows as Bloomberg News reported the U.S. Food and Drug Administration was set to authorize their pills to treat coronavirus as soon as this week.

Read: South Africa Covid-19 Cases Drop as Testing Plunges

“The omicron’s potential damage to economic activity will be reasonably short and shallow,” said Art Hogan, chief market strategist at National Securities. “With household and corporate balance-sheets in good shape and sentiment still strong, we think it’s reasonable to expect that the economy will manage to navigate the rough waters.”

What to watch this week:

EIA crude oil inventory report Wednesday
Bank of Japan Governor Haruhiko Kuroda speaks Thursday
U.S. consumer income, new home sales, U.S. durable goods, University of Michigan consumer sentiment, initial jobless claims. Thursday
Friday: U.S. markets are closed. European markets close earlier

For more market analysis, read our MLIV blog.

Some of the main moves in markets:

Stocks

The S&P 500 rose 0.8% as of 11:30 a.m. New York time
The Nasdaq 100 rose 0.6%
The Dow Jones Industrial Average rose 1.1%
The Stoxx Europe 600 rose 1.4%
The MSCI World index rose 0.9%

Currencies

The Bloomberg Dollar Spot Index was little changed
The euro fell 0.1% to $1.1266
The British pound rose 0.3% to $1.3252
The Japanese yen fell 0.4% to 114.10 per dollar

Bonds

The yield on 10-year Treasuries advanced six basis points to 1.48%
Germany’s 10-year yield advanced six basis points to -0.30%
Britain’s 10-year yield advanced 10 basis points to 0.87%

Commodities

West Texas Intermediate crude rose 3% to $70.69 a barrel
Gold futures fell 0.5% to $1,785.90 an ounce

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