- Dip buyers scooped up some of the hardest-hit shares during a two-day selloff, propelling stocks to their biggest gain since October. Treasuries retreated.
- Gains in the S&P 500 were led by companies that stand to benefit the most from economic growth, with small caps and travel stocks leading the way. The Dow Jones Industrial Average rose nearly 2%, led by aerospace behemoth Boeing. Technology stocks have underperformed.
- The United States is making progress in its efforts to delist Chinese companies from stock exchanges for failing to comply with Washington's disclosure requirements.
- Volatility has gripped financial markets this week, fueled by Fed Chair Powell's hawkish tone and the spread of the Omicron coronavirus strain. According to JPMorgan strategists, the turmoil may provide investors with an opportunity to position for a trend reversal in reopening and commodity trades. While the variant is likely to be more transmissible, early reports suggest it may also be less lethal, they added.
- Last week, applications for state unemployment benefits in the United States increased by less than expected, indicating further progress in the labor market. The figures are released a day before the monthly employment report, which is expected to show a 548,000 increase in payrolls in November.
- Atlanta Fed Governor Randal Quarles, President Raphael Bostic, and his San Francisco counterpart Mary Daly made the case for speeding up the removal of policy support amid higher inflation, echoing Powell's message this week.
- Treasury Secretary Janet Yellen stated that she understands the "reasoning" behind the Federal Reserve's plans to reduce asset purchases.
