Stocks Recover from Omicron Selloff
Energy and consumer stocks helped Canada's main stock index rise on Monday, as oil prices jumped after concerns around the Omicron coronavirus variant eased, although weakness in pot producers limited gains.
The S&P/TSX Composite popped 202.74 points, or 1%, to greet noon Monday at 20,836.01
The Canadian dollar recovered 0.21 cents at 78.22 cents U.S.
Among health-care issues, OrganiGram Holdings, down a penny to $2.33, Tilray, slipping two cents to $11.44, Canopy Growth, fading 20 cents, or 1.6%, to $12.65, while Aurora Cannabis forged its way up a penny to $7.45.
In the tech sector, Hut 8 Mining tumbled 33 cents, or 2.8%, to $11.60, along with other cryptocurrency names, as prospects of a hawkish Fed made speculative assets less attractive.
ON BAYSTREET
The TSX Venture Exchange fell 11.67 points, or 1.3%, to 885.46.
All 12 TSX subgroups gained ground into Monday afternoon, with consumer discretionary shares improving 2.5%, energy rumbling 2.2% higher and real-estate 2% stronger.
ON WALLSTREET
The Dow Jones Industrial Average jumped on Monday and the NASDAQ lagged as investors looked past the emerging threat from the omicron COVID-19 variant, rotating out of high-priced technology shares and into names linked to the recovering economy.
The 30-stock index barrelled ahead 608.99 points, or 1.8%, to break for lunch Monday at 35,189.07
The S&P 500 index gained 40.83 points to 4,579.33.
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The NASDAQ reversed course and moved 21.93 points into the green at 15,107.40.
High-priced tech shares were lower, continuing a de-risking theme in markets. Nvidia was off by 5% while Tesla fell 2%. Microsoft and Alphabet were also lower.
The NASDAQ had struggled at first, hovering around the flatline, thanks in large part to declines in Nvidia, Tesla, Moderna and AMD shares. Those stocks had the biggest negative points impact on the tech-heavy benchmark.
United and Delta Airlines shares jumped about 5%. Carnival gained almost 3% and Wynn Resorts shares were up by about 2%.
Prices for 10-year Treasurys fell backward, raising yields to 1.39% from Friday’s 1.36%. Treasury prices and yields move in opposite directions.
Oil prices surged $1.81 to $68.07 U.S. a barrel.
Gold prices dropped $1.40 to $1,782.90 U.S. an ounce.