Stock futures rose in overnight trading on Monday after a widespread sell-off amid fears about the rapidly spreading Covid-Omicron variant.
Futures on the Dow Jones Industrial Average gained 140 points, S&P 500 futures rose 0.4%, and Nasdaq 100 futures rose 0.6%.
Nike stock rose about 3% in expanded trading after the sneaker maker reported quarterly earnings and sales that exceeded analysts' expectations, despite continued pressure in the supply chain.
The overnight action came after a losing day on Wall Street with low trading volume before the holidays. The blue chip Dow lost more than 400 points for its third consecutive bearish session. The S&P 500 and Nasdaq Composite both lost more than 1% on Monday, and the S&P's 3% decline was its worst reading since September.
The rise in omicrones has kept investors updated with the variant now found in at least 43 states and 90 countries. World Health Organization officials said Omicron was more contagious than any previous variant of Covid-19. 73 percent of new infections in the United States were identified last week, federal health authorities announced on Monday.
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Monday's stock sell-off wiped out earlier gains on the S&P 500 in December and was flat for the month; The Dow is up about 1.3% while the Nasdaq is down nearly 3.6% and is well on its way to a two-month winning streak.
"As we head into the shortened vacation week amid rising Omicron cases, ongoing supply chain pressure, and the failure of the Build Back Better plan, increased volatility and lower trading volumes could cause the market to overreact, which is an upfront buying opportunity could be – by Christmas, "said Mark Hackett, chief of investment research at Nationwide.
Investors also rated the outlook for President Joe Biden's economic agenda. The Senate will vote on Biden's comprehensive social safety net and climate policy bill in January, despite Democratic Senator Joe Manchin opposed. It is unclear whether the Democrats will attempt to pass a smaller bill that only contains parts of the overall package.