- Stocks in the United States rallied the most in nine months, with major averages rising at least 2% on hopes that the omicron variant will not derail global growth.
- Treasuries fell, causing two-year yields to reach their highest level since March 2020.
- The rebound was led by technology stocks, which led the decline last week. The Nasdaq 100 index increased by 3%, an etf that tracks newly public companies increased by 5%, and small caps increased by 2%. The S&P 500 recovered all of the losses suffered following Jerome Powell's hawkish stance a week ago, and was only 0.3% lower than its previous close before the Omicron variant shook markets.
- The CBOE volatility index fell five points to 22. In New York, the dollar fell and crude oil rose above $71 per barrel.
- Risk assets are recovering this week after preliminary data showed that the surge in omicron cases has not overwhelmed hospitals and China moved to expand economic support. A Goldman Sachs group basket of non-profitable technology firms rose nearly 6% on Tuesday, recouping nearly half of last week's losses.
- In terms of data, the US trade deficit shrank, while third-quarter productivity fell. Private consumption was the most important driver of the eurozone's most recent economic expansion.
