Stock futures were subdued early Wednesday morning after major averages rebounded from a three-day losing streak fueled by fears over the Omicron-Covid variant.
Dow Jones Industrial Average futures traded 0.11% lower. S&P 500 futures slipped 0.15% and Nasdaq 100 futures lost 0.23%.
All three major averages rebounded in regular trading, pushing their weekly gains into the green. The Dow added 560 points, or 1.6%. The S&P 500 rose 1.8% and the Nasdaq Composite rose 2.4%.
Travel-related stocks were in relief rally mode as investors put Covid fears aside and bought the slump. Delta Air Lines was up 5.9%, United Airlines was up 6.9% and Carnival was up 8.7%.
"Some of the best performing stocks are 'reopening' stocks, which also suggests that investors are still poised to weather the headwinds from the surge in virus cases," Goldman Sachs' Jeff Currie said in a statement Tuesday . "The response to the virus may (at least for now) mean an acceptance of the 'new normal' … in which investors may find that Covid waves are becoming a regular thing – seasonal like the flu."
President Joe Biden in a press conference Tuesday urged Americans to get their booster vaccinations, saying those who did are "very protected." He also reiterated that the US will not lift the strict lockdowns imposed at the beginning of the pandemic. Early Tuesday, Biden said his government would deploy 1,000 military medical personnel to assist hospitals facing a surge in Covid patients and that it would buy 500 million home-made Covid tests starting next year will be free for Americans through a website.
With the Delta option, "the economy held up better than most expected," said Keith Buchanan, portfolio manager at Globalt Investments. “A lot of people will say that the economy held up because there were more monetary incentives. Omicron is not exactly like Delta, and this is another test of a different kind. It is a test of whether the economy and the market can hold up in the face of much less accommodating fiscal and monetary policies. "
Investors look forward to the release of economic data Wednesday morning including home purchases, existing home sales, GDP and consumer confidence.
CarMax will announce the quarterly results on Wednesday before the bell.