U.S. Futures continues to recover before markets open

Equity futures jumped early Tuesday after a recovery from a volatile week as investors became less fearful of the potential impact of the new version of the Covid omicron.

Dow Jones Industrial Average futures rose 358 points, or 1%. S&P 500 futures rose 1.3 percent and Nasdaq 100 futures rose 1.7 percent.

Shares of chipmakers were the first winners, with Intel jumping 8.4 percent and NVIDIA 3.7 percent after news that Intel plans to launch its self-driving car Mobileye in mid-2022.

Casino stocks were also hot as Las Vegas Sands rose 3.4 percent, while cruise lines also benefited from enthusiasm that omicron could pose less of a threat than feared. Carnival and Norwegian Cruise Line Holdings jumped about 3.5%.

Apple shares rose 1.8 percent in pre-market trading after Morgan Stanley maintained its outperform stock rating, but raised its target price to $ 200, citing the company’s commitment to developing augmented and virtual reality technology.

Shares of GlaxoSmithKline were about 1% higher after the news that the drug manufacturer’s monoclonal antibody treatment showed efficacy in the treatment of omicron.

Elsewhere, Tesla’s shares rose nearly 4% despite news that the company had to change cameras in three of its models. UBS said the electric car maker would be the dominant force in the industry and raised its target price.

The session followed the return of Wall Street, where the Dow won nearly 650 points. The S&P 500 jumped 1.1% on Monday, with all 11 sectors making a profit. Nasdaq Composite turned up to end the day up 0.9%. The rise was driven by travel-related stocks such as airlines and cruise line operators.

Investors are betting that the new strain of Covid-19 may cause a milder disease than feared. White House Chief Medical Adviser Dr Anthony Fauci said on Sunday that initial data on the option was “encouraging”, although he warned that more information was needed to fully understand it.

Meanwhile, the market is also assessing the likelihood that the Federal Reserve will begin to eliminate its massive pandemic relief policies and raise interest rates earlier than expected.

Comments from Fed officials suggest that the central bank is likely to decide to double the rate of decline to $ 30 billion a month at its meeting in December next week. Initial discussions could begin at the December meeting on when to raise interest rates and by how much next year.

The market focus will shift to new inflation data later this week. The consumer price index, which is expected to be even hotter than the previous month, could become a catalyst for the Fed to tighten its policies faster.