Wall St set to open 1% more as tech stocks roar

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A Wall Street sign is visible in front of the New York Stock Exchange (NYSE) in New York, New York, United States on July 19, 2021. REUTERS / Andrew Kelly

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  • Intel jumps on plans to list autonomous car unit
  • Travel stocks join the rebound
  • Merck fails to suspend HIV trial registration
  • Rising futures: Dow 0.99%, S&P 1.30%, Nasdaq 1.80%

Dec. 7 (Reuters) – US stocks appeared poised to open 1% more on Tuesday, as tech companies rebounded on allaying concerns about the Omicron variant, while Intel jumped after its intention to go public its autonomous car unit.

Investors applauded the chip giant’s (INTC.O) decision to list Mobileye in the United States in mid-2022, pushing its shares up 7.7% in pre-market trading. Other chipmakers including Advanced Micro Devices (AMD.O), Micron Technology (MU.O) and Nvidia (NVDA.O) have also increased.

U.S. stock indices closed higher on Monday as bullish comments from a senior U.S. official about Omicron encouraged investors. The CBOE volatility index also fell from a 10-month high reached last week, when fears over the new strain of virus and hawkish comments from the Federal Reserve on a faster cut rocked investors.

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“With yesterday’s rally, investors are starting to understand that the Fed is probably going down for the right reasons,” said Art Hogan, chief market strategist at National Securities in New York.

“And the second thing is that there has been a decreasing economic impact from each new variant of the coronavirus since the start of the pandemic.”

The rebound underscored a rebound in high-end growth stocks, which have been battered in recent days as investors turned to sectors like energy, banks expected to perform better in a tight US monetary policy environment. .

Shares of Big Tech, owner of Google, Alphabet (GOOGL.O), Microsoft (MSFT.O), Amazon (AMZN.O) and Apple (AAPL.O) gained nearly 2%.

Tesla Inc (TSLA.O) added 3.4% after falling into bearish market territory, 20% from its closing high, on an intraday basis on Monday.

“We believe that in 2022, the markets will continue to experience periods of optimism and pessimism about inflation and growth, and will switch between these views until there is more clarity,” said Willem Sels, Global Director of Investments, Private Banking and Wealth. management at HSBC.

Goldman Sachs (GS.N) chief executive David Solomon predicts inflation will be higher for some time and stock returns are expected to slow over the next several years. Read more

As of 8:11 a.m. ET, Dow e-minis were up 347 points, or 0.99%, S&P 500 e-minis were up 59.75 points, or 1.3%, and e-minis Nasdaq 100 were up 285.5 points, or 1.8%.

Shares of Vir Biotechnology (VIR.O) jumped 8.1% after UK drugmaker GSK (GSK.L) said antibody-based COVID-19 therapy it is developing with Vir is effective against all mutations of the Omicron variant. Read more

Travel stocks continued to gain momentum, with Norwegian Cruise Line (NCLH.N) and American Airlines (AAL.O) leading the gains among major airlines and cruise operators. American Airlines also announced the retirement of general manager Doug Parker. Read more

Oil stocks including Exxon Mobil (XOM.N) and Chevron Corp (CVX.N) rose, following gains in crude prices.

Merck & Co (MRK.N) fell 1.6% as Guggenheim lowered the title to “neutral” from “buy” after the drugmaker suspended registration for two late-stage clinical trials testing its investigational drug for the prevention of HIV prior to exposure to the virus.

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Reporting by Sruthi Shankar, Devik Jain and Shreyashi Sanyal in Bangalore; Editing by Maju Samuel and Saumyadeb Chakrabarty

Our Standards: Thomson Reuters Trust Principles.

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