Stock futures opened flat on Tuesday night after major averages rebounded from a three-day losing streak fueled by fears about the omicron Covid variant.
Futures contracts on the Dow Jones Industrial Average fell 0.03%. S&P 500 futures were down 0.06% and Nasdaq 100 futures were down 0.1%.
The top three averages rallied in regular trading, pushing their weekly gains into the green. The Dow Jones added 560 points, or 1.6%. The S&P 500 rose 1.8% and the Nasdaq Composite gained 2.4%.
Travel-related stocks were in a rally of relief, with investors pushing aside Covid fears and buying the downside. Delta Air Lines rose 5.9%, United Airlines by 6.9% and Carnival by 8.7%.
“Some of the best performing stocks are ‘reopen’ stocks, also indicating that investors are still willing to look through the headwinds of increasing virus cases,” Goldman Sachs’ Jeff Currie said in a note. Tuesday. “The reaction to the virus perhaps signifies an acceptance (at least for now) of the ‘new normal’… in which investors can determine that waves of Covid are becoming a regular thing – seasonal like the flu perhaps. “
President Joe Biden, at a press conference Tuesday, urged Americans to get vaccinated, saying those who have are “highly protected.” He also reiterated that the United States will not bring back the strict lockdowns that were imposed at the start of the pandemic. Earlier on Tuesday, Biden said her administration would deploy 1,000 military medical personnel to support hospitals facing a surge in Covid patients and that it would purchase 500 million home Covid tests that will be free for Americans via a website starting next year.
With the delta variant, “the economy was able to hold up better than expected,” said Keith Buchanan, portfolio manager at Globalt Investments. “A lot of people will say the economy held up because there was more monetary stimulus. Going into Omicron, this is not necessarily as much the case as it is in Delta and it is another test of a different flavor. The aim is to test whether the economy and the market can hold up given the much less accommodating fiscal and monetary policy. “
Investors are eagerly awaiting the release of economic data Wednesday morning, including home purchases, existing home sales, GDP and consumer confidence numbers.
CarMax is expected to release its quarterly results before the bell Wednesday.