Wall Street indexes were set to rise sharply on Monday as investors rushed to capitalize on steep virus-driven losses while waiting for more information on the severity of the Omicron coronavirus variant.
On Friday, all three major indexes fell between 2.0% and 3.5% after news of the coronavirus variant triggered a global sell-off, as countries imposed new travel restrictions on fears the Omicron variant would resist vaccinations and derail a nascent economic recovery.
The White House said that US President Joe Biden will update the public later in the day on the variant and the country's response.
Among their peers, Nasdaq premarket indicators rose the most, indicating that investors were likely favoring pandemic-resistant technology stocks.
Travel stocks, which were among the hardest hit during Friday's sell-off, rose sharply in premarket trading. Following a 3% to 9% drop on Friday, shares of major airline operators rose between 0.7% and 3.5%.
Major bank stocks recovered in response to a recovery in Treasury yields, but concerns about the Omicron variant caused investors to price in a possible delay in the Federal Reserve's interest rate hikes next year.
"If Omicron did become a major issue, it would have to be bigger than the Delta waves which we just went through. There's no question that the (Fed) taper would either be paused or delayed," said Thomas Hayes, managing member, Great Hill Capital LLC, New York. "You may get a little whiplash back and forth with headlines in coming weeks, but on balance, people need to have exposure into year-end."